Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
GOLD: reverse from the channel bottom?
Information is not investment advice
Gold reached $1 930 at the end of last week. The question back then was whether it would break the roof of the channel or reverse to get to its bottom. It reversed. On Tuesday, it was at $1 890 testing the bottom of the channel. Although it made a spike above $1 910, it got back to the trend’s lower border. So the question now is: will it get back up to cross $1 930 and hit the other side of the channel? Very possibly, but we need to confirm the bullish reversal first.
Going above $1 900 and crossing the 50-MA would be the first step. Passing $1 910 on the way upwards would be the second step. Finally, testing $1 930 would be the third step to expect a new local high – probably at $1 950. So watch those three steps and make sure you are on the ride side of the trend.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
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.