All Articles Tagged - gold

US Open Note – Dollar climbs as prices and yields tick higher

Posted on November 17, 2021 at 2:49 pm GMT

Global inflation risks prevail, Canada delivers CPI data The US economy appears to be recovering well in the last quarter of the year and subsequently, speculation about a fresh Fed Chairman being appointed seems to be fading in the horizon. Yesterday’s surprise surge in US retail sales by 1.7% m/m in October hints that consumption remains at elevated levels. However, these figures are nominal as rising price pressures persist. The dollar index has touched 96.24, levels last seen in July [..]

Is gold an inflation hedge again? – Special Report

Posted on November 16, 2021 at 5:16 pm GMT

Gold hasn’t provided much protection against spiraling inflation this year, but things are finally changing. With traders looking for inflation hedges, rising geopolitical tensions, and favorable seasonals, this party could keep going for a few months. Sadly though, it may prove to be a bear market rally as a slowdown in inflation and rising interest rates next year ultimately take the shine off the precious metal. Gold strikes back For centuries, gold has been the supreme place to hide whenever [..]

US Open Note – Dollar continues march higher after the US retail sales release

Posted on November 16, 2021 at 2:04 pm GMT

US retail sales ticks up US retail sales are the highlight of today. The figure climbed by 1.7% m/m for October as compared to 0.8% in the previous month, driving the greenback higher. Despite supply issues and delivery delays, there is a strong belief that customers will begin their holiday shopping earlier this year. Vice President Biden has made his selection for the position of Chairman of the Federal Reserve. Powell is the most qualified candidate, even though Brainard has [..]

US Open Note – Greenback slips as Fed tapering starts

Posted on November 15, 2021 at 2:04 pm GMT

Fed tapering begins According to the FOMC meeting of November 2-3, tapering will begin this week as planned. The New York Fed announced its modified bond-purchase schedule last week, confirming that tapering will start this month. Until June, the Federal Reserve intends to keep reducing its purchases by $15 billion each month. There is a possibility of a change in tapering speed, but the Fed has indicated that it will only do so if it is necessary. Futures for the Fed Funds rate are still pricing in a Q2 liftoff of roughly two-thirds, while [..]

Daily Market Comment – Cautious tone ahead of risk events, dollar softer

Posted on November 15, 2021 at 10:03 am GMT

Stocks are mixed, dollar eases ahead of Biden-Xi meeting, US data, Fed speakers Modest lift from upbeat Chinese data as worries about property sector linger Yield differentials in driving seat in FX market, gold holds near highs Subdued start to week amid caution It was a relatively subdued start to the week across financial markets on Monday as stocks, bonds and the dollar were still reeling from last week’s US CPI shock. The panic and fallout from the jump in [..]

Technical Analysis – Gold looks vulnerable as ascent struggles around 1,870

Posted on November 15, 2021 at 9:44 am GMT

Gold is battling to extend its commanding rally, from the 1,759 low, past the obstacle at 1,870, which has managed to limit the upside trajectory. The converged simple moving averages (SMAs) are sponsoring a trendless market. The Ichimoku lines are signalling that upside forces are taking a breather, while the short-term oscillators are leaning to the upside. The MACD, in the positive zone, is strengthening above its red trigger line, while the RSI is flirting with the 70 level. The [..]

US Open Note – Dollar turns down after printing new highs

Posted on November 12, 2021 at 1:46 pm GMT

Eyes on JOLTS job openings ahead of inflation expectations There is a scarcity of fresh information today. The JOLTS job openings for September and the preliminary November consumer mood index from the University of Michigan will be released later in the day. The results of the JOLTS survey should demonstrate that supply of workets continues to be the most pressing issue in the labor market. These are generally second-tier economic data from the United States, but they may garner more attention this time around because [..]

Daily Market Comment – Dollar storms higher as hot inflation reignites Fed bets

Posted on November 11, 2021 at 9:49 am GMT

US inflation comes in hot, pouring fuel on Fed rate hike expectations Dollar hits new highs for the year against euro and sterling Stock market feels the heat, gold turns into an inflation hedge Markets reprice Fed Another shocking acceleration in US inflation unleashed havoc across global markets yesterday. The annual CPI rate clocked in at 6.2%, overcoming even the most aggressive forecasts. It was the usual suspects such as energy prices and used cars driving inflation higher again, although [..]

Technical Analysis – Gold stumbles around 2-month high levels

Posted on November 9, 2021 at 4:15 pm GMT

Gold seems to be struggling to overcome the resistance ceiling of 1,827-1,834 that has held since mid-July, following the recent climb from the 1,759 level. The bullish simple moving averages (SMAs) are sponsoring the recent ascent in the price. That said, the short-term oscillators are contradicting the lagging averages, indicating that positive forces are fading. The MACD, deep in the positive region, has flattened and neared its red trigger line and is looking to dip below it. The RSI and [..]

US Open Note – Dollar still holds in negative territory after US PPI

Posted on November 9, 2021 at 2:16 pm GMT

Calm day with US core PPI Across the board, this week’s data has been strong but not so important. The market has instead been focused on central banks, with both the US Federal Reserve and the Bank of England meeting last week. The FOMC voted to taper immediately in November, with a $15bn reduction per month in purchases, which implies asset purchases would end completely by June 2022. Markets are continuing to price in a Fed lift-off that occurs sooner than the Fed desires. Even though many Federal [..]

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