All Articles Tagged - gold

US Open Note – Stocks return to green zone as covid fears wane

Posted on December 21, 2021 at 2:06 pm GMT

Risk-on appetite returns but covid headache to be continued Omicron fears took a back seat on Tuesday, letting global stock indices, risk-sensitive currencies, and energy prices recoup some lost ground. Of course, the pandemic will remain the key driver for market sentiment for longer, at least into the new year, navigating inflation pressures, and therefore, monetary tightening plans accordingly. But for now the recent bearish correction is reminiscent of the short-lived downfall, which stock markets faced in the same period [..]

US Open Note – Stocks go downhill as omicron bears bite; dollar, euro resilient

Posted on December 20, 2021 at 2:23 pm GMT

Omicron plays with investors’ nerves as stimulus vanishes Stock markets were in a sea of red during mid-European trading hours as omicron concerns and tighter curbs in Europe reminded investors that the pandemic is far from over and Covid could still swamp global demand after two years of limbo. The pan-European STOXX 600 and the British FTSE 100 index followed their Asian counterparts deeply lower, with energy shares, basic materials, and consumer cyclicals driving the bulk of losses, plunging by [..]

Technical Analysis – Gold trapped below 1,800 bar; bias cautiously bullish

Posted on December 20, 2021 at 8:36 am GMT

Gold remains trapped below the 1,800 boundary and the support-turned resistance trendline despite the quick bounce off the more-than-two-month low of 1,752. The 50- and 200-day simple moving averages (SMAs) and the 38.2% Fibonacci retracement of the 1,680 – 1,877 upleg are making any breakout around the 1,800 threshold more essential, but bullish signals are not really convincing yet, reflecting some cautiousness among traders instead. Particularly, the RSI has shifted to the sidelines after barely crossing above its 50 neutral mark, the MACD [..]

Commodities outlook: what does 2022 hold for gold and oil as virus still lingers?

Posted on December 17, 2021 at 1:49 pm GMT

In 2021, optimism about the global economic recovery pressured gold to retreat from its 2020 highs but remain comfortably above its pre-pandemic levels. Next year, in an environment of higher interest rates, rising bond yields and a stronger US dollar, bullion’s prospects seem ominous. On the other hand, growth commodities like oil and industrial metals, whose fortunes are heavily dependent on global economic performance have appreciated in the current year. If the world continues to make progress in keeping the [..]

Weekly Comment – A quiet festive week approaches after central bank fiesta

Posted on December 17, 2021 at 12:41 pm GMT

The dust is settling on an intense central bank week, in which most Banks adopted a more hawkish tone, scaling back bond purchases and reducing the financing of aid packages, while the Bank of England and Norges Bank took it a step further by hiking interest rates. In the upcoming week, the spotlight would turn to the barrage of US and UK economic data releases, alongside RBA minutes and Japan’s inflation report. The highlights: In America, the quarterly GDP print and the consumer confidence index will be published on [..]

Daily Market Comment – BoE raises rates, ECB raises forecasts

Posted on December 17, 2021 at 10:01 am GMT

Bank of England catches markets sleeping with rate increase European Central Bank slashes asset purchases, raises forecasts But stock markets fall back, taking the shine off sterling and euro BoE delivers surprise hike The Bank of England raised interest rates by 15 basis points yesterday in a move that caught investors sleeping on the wheel. While the British economy can certainly handle higher rates given the strength of the labor market and broadening inflationary pressures, the ferocious covid wave that [..]

Technical Analysis – Gold slips further below the consolidation area of 1,770-1,791

Posted on December 15, 2021 at 11:57 am GMT

Gold prices are slipping beneath the consolidation area of 1,770-1,791 that has been holding since the beginning of the month. The RSI indicator is moving lower in the bearish zone, while the MACD oscillator is strengthening its negative momentum below its trigger and zero lines. However, the 20- and 40-period simple moving averages (SMAs) are flattening, mirroring the latest action in price. The next target to the downside is the 1,761 low, while at this stage the market would likely see a resumption of the downtrend [..]

Daily Market Comment – Fed gears up for battle, markets tremble

Posted on December 15, 2021 at 9:47 am GMT

Fed meeting today will be critical – all eyes on taper speed and dots Dollar climbs, stocks dive after US producer prices surge UK inflation spike revives BoE rate bets, gold rolls over Fed in the spotlight The Federal Reserve is widely expected to accelerate the pace at which it dials back its asset purchases today, opening the door for raising interest rates earlier. An onslaught of impressive economic data and intensifying inflationary pressures have left policymakers little choice but [..]

US Open Note – Quiet day ahead of raft of central bank meetings

Posted on December 13, 2021 at 2:02 pm GMT

It’s a relatively quiet start to the week before the expected onslaught of central bank meetings that will take place this week. On Monday, US futures gained along with European stocks as traders braced for a week of central bank decisions amid fears about inflation and the omicron virus. Fed, ECB and BoE meetings in the spotlight this week The Federal Reserve is anticipated to accelerate its stimulus withdrawal on Wednesday and could pave the way for quicker interest rate hikes in 2022 if price pressures remain around a [..]

Daily Market Comment – Mega week for central banks begins

Posted on December 13, 2021 at 9:32 am GMT

Markets relieved after US inflation report, trading like this is the peak Dollar pulls back alongside yields, stocks close at new records Massive week lies ahead, featuring five major central bank meetings Peak inflation? The latest inflation data out of the United States sparked a relief rally on Friday. Even though annual CPI inflation hit a four-decade high of 6.8%, investors were apparently positioned for an even hotter print after some earlier comments from President Biden that seemed to warn [..]

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