All Articles Tagged - gold

Daily Market Comment – Strong jobs report can’t lift dollar, but equities shoot up

Posted on November 8, 2021 at 9:27 am GMT

Dollar unable to capitalize on solid US employment report But stock markets push higher, powered by decline in yields Gold shines as well, focus now turns to litany of Fed speakers Strong NFP not enough to boost dollar The US employment report for October was pretty solid. Nonfarm payrolls overcame forecasts, the previous month’s number was revised higher, the unemployment rate fell another two ticks to reach 4.6%, and wage growth accelerated. Yet investors were not impressed. Treasury yields fell [..]

Technical Analysis – Gold eyes crucial breakpoint after fast rally

Posted on November 8, 2021 at 8:46 am GMT

Gold ticked to a fresh 2-month high of 1,821 on Monday following the speedy recovery during the past two trading days, which boosted the price by a whopping 2.7% but it was still not enough to reach the crucial resistance of 1.833. Note this is where the 38.2% Fibonacci retracement of the 2,079 – 1,676 downfall is also positioned. The momentum indicators keep feeding some optimism that the latest rally could gain extra legs in the coming sessions. Despite testing [..]

Weekly Comment – Bonds are rallying but will US CPI spoil the party?

Posted on November 5, 2021 at 1:31 pm GMT

The Fed, ECB, BoE and RBA all pushed back on aggressive rate hike expectations that had been baked in by the markets, lifting bond prices. But US inflation numbers coming up next week could cast fresh doubt on the transitory story, sparking a selloff. However, it’s looking like a win-win for USD. The highlights: US Treasury yields have stabilized after slumping all week with the help of a better-than-expected jobs report for October. If the latest CPI readings also surprise [..]

US Open Note – BoE rate surprise squeezes pound to monthly lows; oil rallies ahead of OPEC

Posted on November 4, 2021 at 2:40 pm GMT

BoE: Barking without bite Investors have been running ahead of central banks’ plans lately, growing confident that interest rates would rise earlier than previously anticipated as global inflation shows no signs of abating. In the UK though, the strong market pricing for a 15 bps rate hike had been somewhat reasonable. Policymakers, including Governor Andrew Bailey, had been constantly calling for a tighter monetary policy after showing willingness to raise interest rates before the bond tapering phase starts, citing the [..]

Technical Analysis – Gold plunges below supportive trendline

Posted on November 3, 2021 at 1:48 pm GMT

Gold slid aggressively below the ascending trendline in the four-hour chart on Wednesday, signalling more negative sessions ahead. The 50% Fibonacci retracement of the 1,833 – 1,722 downleg at 1, 777 is also positioned in the same region, making any violation important to watch. With the RSI extending its downtrend towards its 30 oversold level, and the MACD hovering below its signal and zero lines, the odds look to be against the market. Encouragingly, though, the Stochastics suggest the sell-off [..]

Technical Analysis – Gold hovers within SMAs in horizontal trajectory

Posted on November 1, 2021 at 8:00 am GMT

Gold is struggling to remain above the 1,800 handle and has been still hovering within a consolidation area of 1,723-1,834 since June 16. The simple moving averages (SMAs) are generally flat and converging, implying a more neutral price behavior. Technically, the RSI is flattening around the neutral threshold of 50, while the stochastic is heading south towards the oversold region. If the price closes above the 200-day SMA and the 1,800 level, nearby upside resistance could come from 1,814. By [..]

US Open Note – Bank of Canada takes center stage; dollar loses momentum

Posted on October 27, 2021 at 1:11 pm GMT

BoC rate decision coming up The Bank of Canada’s interest rate decision is the main event of the day. Policymakers are predicted to leave rates unchanged at 0.25%. Economic growth has fired up, inflation is hot, businesses are feeling optimistic, the housing market is booming, and oil prices continue to climb. Macroeconomic projections that will be updated may provide some hints. The CPI for September came in at 4.4% year on year, more than double the target of 2% and significantly higher than the intended range of 1-3%. Retail sales and employment data [..]

US Open Note – Stocks around highs, dollar flat, and gold’s resilience tested

Posted on October 26, 2021 at 2:04 pm GMT

Sentiment improves but focus remains on BOC, ECB, and US GDP figures The dollar seems to be flat ahead of Thursday’s GDP figures, scheduled for 12:30 GMT. Even if the GDP figures disappoint, the damage could be largely short-lived because on the horizon is an FOMC meeting on November 3, expected to signal the start of tapering and possibly depict a clear tapering timeline. Moreover, an imminent huge infrastructure bill is on the cards, which the US Congress is working [..]

US Open Note – Calm day ahead of busy week; oil around $85

Posted on October 25, 2021 at 1:00 pm GMT

US futures near new highs; Facebook releases its earnings Today’s economic calendar is light, but the rest of the week promises to be very interesting, with central bank meetings in the Eurozone, Canada, and Japan, as well as earnings reports from the technology industry’s heavy hitters. Facebook will launch the earnings campaign immediately following Wall Street’s closing bell. It is somewhat bizarre to watch US futures trading marginally lower from their all-time highs, even as inflation predictions continue to rise. If the tech sector earnings approve, the [..]

Technical Analysis – Gold fails to leave 1,800 level in the dust; upside shaky

Posted on October 25, 2021 at 8:49 am GMT

Gold is struggling to convincingly conquer the 1,800 handle and thus some doubt has been thrown into gold’s positive picture as sellers pushed back heavily in Friday’s trading session. The simple moving averages (SMAs) are overall on a horizontal trajectory and are converging, endorsing a more neutral price demeanour. The Ichimoku lines are showing that bullish pressures have not fully disappeared, while the short-term oscillators are reflecting an increase in positive momentum. The MACD is making additional progress above its [..]

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