All Articles Tagged - gold

US Open Note – Dollar mixed in the absence of data

Posted on May 24, 2021 at 12:47 pm GMT

Dollar waits for PCE inflation; euro jumps above $1.22 This week is a quiet period in terms of data as the US core PCE on Friday will be in the spotlight. The US dollar posted some marginal gains in the beginning of this session, but lost steam after finding strong resistance near the 109.00 round number versus the Japanese yen. The lack of major releases is not helping the greenback to turn up until there are more strong US data and Treasury yields stop their decline. The US [..]

Technical Analysis – Gold gains momentum, rising above descending channel

Posted on May 24, 2021 at 6:47 am GMT

Gold prices are creating an upside rollercoaster, exiting from the preceding days’ long-term descending channel. The price is looking strongly positive, surpassing the 200-day simple moving average (SMA) and the 50.0% Fibonacci retracement level of the down leg from 2,074.89 to 1,676 at 1,875. The stochastic oscillator is turning up again in the overbought region, while the RSI is still gaining ground above the 70 level. Both are suggesting more gains despite the overstretched market. More upside pressure could drive [..]

Weekly Comment – Taper rollercoaster ends badly for USD; can PCE inflation save it?

Posted on May 21, 2021 at 1:40 pm GMT

The Fed spooked markets when the April minutes signalled tapering discussions could begin soon. However, after digesting the information, investors were none the wiser and September remains the most likely date which the Fed will make its taper announcement. USD and Treasury yields have subsequently come crashing back down. Can next week’s PCE inflation data provide any boost? The highlights: Consumer confidence, durable goods orders and personal income & spending numbers are coming up next week, but the spotlight will [..]

US Open Note – Stocks, currencies in quiet trading as taper concerns take the back seat for now

Posted on May 21, 2021 at 1:09 pm GMT

European stocks could gather interest What is striking about economic data is that the stronger they become around multi-year highs, the smaller the need for stimulus, and consequently investors are less encouraged to drive stocks higher. But this narrative likely fits the US landscape better, where stock indices are more skewed towards expensive tech and other growth companies. In Europe, stocks continue to trade in a discount relative to their US counterparts, with the STOXX 600 index trading 16.7x forward earnings versus 21x for the S&P 500 according to Refinitiv estimates – despite the gap narrowing a [..]

Daily Market Comment – Dollar licks wounds after rollercoaster week, tech stocks rebound

Posted on May 21, 2021 at 9:30 am GMT

Dollar skids towards 3-month lows as inflation and taper fears ease further Wall Street halts losing streak as lower yields lift tech stocks Commodities extend losses but gold holds near highs amid rotation out of crypto Dollar bruised by Fed taper false alarm Inflation and taper jitters subsided further on Friday following the mid-week scare when the Fed minutes revealed some worries about persisting high inflation and eagerness among some participants to begin the taper debate. However, markets have concluded [..]

US Open Note – Dollar flatlines after FOMC meeting minutes; equities mixed

Posted on May 20, 2021 at 1:16 pm GMT

Markets in no man’s land after FOMC meeting minutes Markets seem to be in no man’s land today. On the one hand, the reopening phase in developed countries and accommodative fiscal and monetary policies point to a bright future for the global economy. On the other hand, the patience among central banks against rising fears of above-target inflation threatens a delayed response and a bumpy economic recovery. Surprisingly, the FOMC minutes from April’s meeting attempted to shed some light on [..]

US Open Note – Stocks in the red as inflation debate continues; dollar recoups some ground

Posted on May 19, 2021 at 1:19 pm GMT

Fed meeting minutes eyed as inflation jitters resurface Inflation jitters and the latest infection pickups in Asia offset growth optimism in markets on Wednesday and revived fears that the Fed could start its tapering process and subsequently raise interest rates sooner than expected although the central bank has talked down the case several times, arguing that any spike in inflation will be temporary. Perhaps the Fed may once again put its assurances into words when it releases its minutes from [..]

Technical Analysis – Gold prices flirt with 4-month high; bullish in medium term

Posted on May 19, 2021 at 7:27 am GMT

Gold prices have lost its positive momentum after it reached the four-month high of 1,875. In the short-term, the market could retain the neutral-to-bearish trading as the RSI is ticking down around the overbought region and the stochastic is moving lower towards the oversold area. The medium-term bullish trend though could stay in place given that prices continue to fluctuate above the Ichimoku cloud and the simple moving averages (SMAs). Should the pair stretch south, 1,855 could provide immediate support before the [..]

US Open Note – Stocks pick up, dollar hurt and gold retains bullish tone

Posted on May 18, 2021 at 1:15 pm GMT

Stocks recoup yesterday’s lost ground as dollar loses dominance US major indices are largely holding around yesterday’s highs after having reclaimed surrendered ground, emanating a slight pickup in risk appetite. That said the damage in the greenback is being felt across the board. The dollar index plunged below the 90.0 mark and has managed to stabilize around 89.70. The Fed’s dovish stance seems to be weighing on the greenback and sentiment appears to be subdued. Steady yields are not discouraging [..]

Daily Market Comment – Stocks bounce back as optimism returns, dollar sags

Posted on May 18, 2021 at 9:13 am GMT

Stocks bounce back as recovery hopes supersede virus and inflation jitters Dollar slumps on easing Fed taper worries but inflation bets lift gold Euro and pound surge as Europe reopens, loonie hits highest in 6 years Markets buoyed as optimism takes over Fears about rising virus cases in Asia receded on Tuesday as signs that infections in India are on the decline and as more European nations slowly lift their restrictions boosted hopes that the global recovery remains on track. [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

gold

XM Live Chat