The G20 summit took place in Bali, Indonesia, on November 2022…
Is gold changing a long-term direction?
Information is not investment advice
Gold is steadily plummeting for the third consecutive day. Where is the bottom? Let’s find out.
XAU/USD has been pressed down by the strong demand for the safe-haven US dollar. The greenback has been boosted by the worsened market sentiment amid rising cases in Europe and the UK. Just recently the UK Prime Minister Boris Johnson has imposed new restrictions in the country for further 6 months as new infections have surged, and also colder weather is coming back, making people more vulnerable to respiratory viruses and especially Covid-19.
Fed’s Powell delivered a statement yesterday and pointed to a resilient economic activity, but emphasized there is a long way to the full recovery. The USD surged after that report, pushing gold to the downside. Besides, the optimism over the stock markets diminished the gold’s safe-haven status.
Overall, the current situation on the market points to the further gold bearishness, but it may change after the US Manufacturing and Services PMI reports at 16:45 MT time and Powell’s speech at 17:00 MT time. Pay attention to them!
Gold has been trading in a triangle pattern since the beginning of August. After that, it has broken the lower trend line, confirming the bearish breakthrough. Therefore, the yellow is likely to keep falling further. The move below the support of $1 880 will drive the price to the key barrier of $1 860. In the opposite scenario, if it jumps above the psychological mark of $1 900, the way towards $1 940 will be open.
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?