All Articles Tagged - gold

Weekly Comment – Central bank fiesta, nonfarm payrolls, and economic data barrage

Posted on January 28, 2022 at 10:11 am GMT

The Fed adopted quite hawkish rhetoric in its latest FOMC minutes, triggering risk-off sentiment and causing a severe sell-off in risky assets. In the upcoming week, the latest US employment data alongside central bank meetings in the UK, Australia, and Europe will take center stage, while a raft of economic data releases will also hit the markets. The highlights: In America, nonfarm payrolls will be out on Friday, where a stronger-than-expected report might seal the deal for a more aggressive rate hike timeline, further boosting the USD. Moreover, employment data for [..]

Technical Analysis – Gold extends its retreat amid lingering bearish forces

Posted on January 28, 2022 at 7:22 am GMT

Gold has been experiencing a major pullback in the last few four-hour sessions, erasing most of its medium-term upside trajectory. The price profoundly crossed beneath both its 50- and 200-period simple moving averages (SMAs), endorsing bullion’s short-term bearish picture. This recent retreat is likely to resume as the momentum indicators depict that negative forces remain in charge. The MACD histogram is found beneath both zero and its red signal line, while the RSI is flatlining marginally above the 30-oversold mark. Furthermore, [..]

US Open Note – Dollar surges ahead of FOMC decision; stocks back in positive ground

Posted on January 26, 2022 at 1:54 pm GMT

Markets are gradually stabilizing, despite the fact that Russia-Ukraine tensions remain high. The two-day FOMC meeting concludes this afternoon. FOMC meeting ends today The Fed is widely expected to keep a hawkish stance as it prepares the market for a rate lift-off on March 15-16. This year’s three quarterly rate increases have already been factored into the market. In the absence of any new macro projections or Dot Plots, we expect Fed Chair Powell to make a very clear message [..]

US Open Note – Market awaits FOMC meeting, keeps an eye on Ukraine crisis

Posted on January 25, 2022 at 1:52 pm GMT

FOMC minutes attract attention The two-day FOMC meeting begins today and concludes tomorrow with a decision as the global economy is feeling the pain of omicron variant. The Federal Reserve is widely expected to maintain its hawkish stance as it prepares the market for liftoff at its next meeting. Anyone hoping for some form of Fed Put this week will likely be disappointed. The Federal Reserve’s top aim right now is to keep inflation under control. Because the economy is on the verge of reaching full employment and inflation [..]

Daily Market Comment – Volatile trading continues as Fed meets, Ukraine tensions boil

Posted on January 25, 2022 at 10:24 am GMT

Wall Street bounces back but futures, Asia sink again; mood brighter in Europe Dollar and yen hold firm as Fed angst and geopolitical risks keep havens in demand Earnings and US consumer confidence gauge may test investor nerves More rocky rides for stocks Shares on Wall Street staged a dramatic rebound on Monday, recovering from heavy losses that briefly took the S&P 500 into correction territory. The benchmark index was down by about 4% at one point before a last-minute [..]

Daily Market Comment – Equities remain pressured as traders weigh Fed and geopolitical risks

Posted on January 24, 2022 at 10:21 am GMT

Stock market rout deepens amid Fed and Ukraine worries, but US futures point to rebound Dollar and gold edge up, euro see-saws on mixed PMIs Fed meeting and major earnings to likely dictate market sentiment Markets still jittery but selloff eases Wall Street just had its most bruising week since the onset of the pandemic in March 2020 and it could get even rockier for stocks in the coming days. The Federal Reserve is poised to give a formal nod [..]

US Open Note – Stocks extend declines, dollar maintains resilience

Posted on January 21, 2022 at 1:19 pm GMT

Market sentiment deteriorates as yields remain elevated Wall Street’s correction continues to develop lower, with the tech-heavy Nasdaq 100 affected more, falling 4.6% yesterday. Despite this week’s disappointing US jobless claims, which rose 286k versus an expected 220k, potentially due to surging cases of Omicron, and the correction in the US equities – in an environment of elevated yields – the market story is likely to remain the same with the Fed moving forward with removing accommodation and delivering expected [..]

US Open Note – Market sentiment freezes, dollar largely unchanged

Posted on January 20, 2022 at 2:33 pm GMT

Markets digest US jobless claims and Philly manufacturing The US stock futures correction deepened as risk sentiment has remained negative, while the 10-year yield at 1.88% seems to be keeping the dollar buoyant. It appears the hawkish tone from the Fed has saturated markets and they have become less sensitive lately. The US economy is nearing full employment and today’s rise in jobless claims has managed to only nudge the dollar index slightly lower, stabilizing around the 95.40 level. The [..]

Daily Market Comment – Nasdaq enters correction territory

Posted on January 20, 2022 at 10:06 am GMT

Wall Street ends lower again but China rate cut calms nerves US yields pull back, knocking the wind out of the dollar Gold hits two-month high, ECB minutes and Netflix earnings eyed Mood improves, slightly It has been a stormy week for global financial markets, with riskier assets such as equities taking a beating at the hands of rising interest rates. The Nasdaq closed another session sharply lower to officially enter correction territory, which is defined as a drawdown of [..]

US Open Note – Stocks fail to recover, dollar remains resilient

Posted on January 19, 2022 at 1:24 pm GMT

Elevated yields favour dollar, Canadian inflation in spotlight The primary market focus remains centred around the Fed and how it will tackle inflation, with market participants juggling the premise of how many rate hikes will unfold this year. Expectations almost ‘guarantee’ three hikes but the dollar’s recent gains have been fuelled by rising Treasury yields, which have supported the dollar index around the 95.60 mark. US stock futures are somewhat finding their feet after the correction, while the 10-year Treasury [..]

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