The G20 summit took place in Bali, Indonesia, on November 2022…
Gold dropped on vaccine rollout
Information is not investment advice
XAU/USD has been falling due to market optimism. Will it keep moving down?
First of all, the FDA approved the vaccine of Pfizer and BioNTech for emergency use. That’s why the market sentiment improved, and investors streamed their capital to riskier currencies and stocks. Elsewhere, the EU and the UK agreed to continue negotiating, giving a signal that the deal may be reached soon. The prospect for the Brexit agreement added to the risk-on sentiment as well. Even hopes for the additional US stimulus package and the massive USD selloff haven’t helped gold to rise.
XAU/USD is moving inside the descending channel. It is approaching the key support of the 200-day moving average of $1 810. Gold is unlikely to break it down for the first attempt. That’s why we can expect it will bounce off this level initially. If it manages to break it down, it may drop to the next support at the low of November 30 at $1 770. On the flip side, the move above the recent highs of $1 845 will drive XAU/USD to the 50-period moving average of $1 870, which it has failed to cross several times. In a nutshell, gold is stuck between two moving averages.
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?