Investing.com - Gold prices traded near flat on Friday in Asia as investors awaited further news on trade talks for signs of a resolution in the U.S.-China dispute.
Investing.com - The Chinese yuan fell on Monday in Asia after data showed China’s GDP slowed in the fourth quarter.
This week, the price action in gold will continue to be driven by the movement in U.S. Treasury yields and appetite for risk. Rising yields and stock prices should dampen demand for gold. Technically, traders may try to pressure sell stops under the recent low at $1278.10. If successful, they could trigger a break into $1268.50. All bets will off for a steep break if buyers can recapture $1289.20.
The tone changed from short-term bullish to short-term bearish last week when U.S. Treasury yields started to rise. This helped make the U.S. Dollar a more attractive investment. Yields are being boosted by increased demand for risky assets tied to the optimism over the positive developments in the trade talks between the United States and China.
This week, the price action in the USD/JPY will continue to be driven by the movement in U.S. Treasury yields and appetite for risk. Investors are likely to continue to focus on events regarding U.S.-China trade negotiations although we may see some increased concerns over the partial U.S. government shutdown.
Based on Friday’s price action, the direction of the February Comex gold futures contract on Monday is likely to be determined by trader reaction to the major 50% level at $1285.70.
Investing.com - This week precious metals traders will be monitoring trade talks for signs of a resolution in the U.S.-China trade dispute, while concerns over the economic impact of the U.S. government shutdown and uncertainty over Brexit will also remain in focus.
Investing.com - This week investors will be continuing to monitor U.S.-China trade negotiations for signs of progress, while the ongoing government shutdown continues to delay some key U.S. economic reports.
Based on last week’s price action and Friday’s close at .7165, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the main Fibonacci level at .7153.
It’s not just China’s economy that the markets are concerned with. An end to the government shutdown and more progress on trade talks is needed.
Based on the price action on Thursday and Friday, the direction of the NZD/USD on Monday is likely to be determined by trader reaction to the main 50% level at .6781.
The Trump administration said that new estimates show the cost of the government shutdown will be twice as steep as originally forecast. The original estimate showed that the partial shutdown would subtract 0.1 percentage points from growth every two weeks. That estimate has now been doubled to a 0.1 percentage point subtraction every week.
Based on Friday’s close at 109.706, the direction of the USD/JPY on Monday is likely to be determined by trader reaction to the 50% level at 109.445.
The daily swing chart indicates downside pressure as long as the EUR/USD remains on the bearish side of the Fibonacci level at 1.1409.
Late Friday, President Donald Trump said he will make a “major” announcement on Saturday about the border and ongoing government shutdown. China offers to increase its annual import of U.S. goods by a combined value of over $1 trillion.
U.S. West Texas Intermediate and international-benchmark Brent crude oil hit their highest levels since December 7 on Friday, led by another day of stock market gains, and a report that China has offered a plan to erase its trade surplus with the United States. The news about China drove up demand for risky assets with stocks hitting their highest levels in more than month. This encouraged investors to shed their long positions in safe-haven gold. The overall price action in natural gas last week suggests investor indecision, but that can be expected during a weather market.
Bitcoin prices are trading mostly unchanged on Friday, continuing what’s been a quiet week for the best-known cryptocurrency.
The U.S. dollar strengthens across the board as investors remained optimistic on U.S.-China trade talks, putting the greenback on track to finish the week in the green for the first time since mid-December.
Bloomberg news is saying that Chinese officials made the offer during the mid-level trade talks earlier in the month. Furthermore, China offered to increase its annual import of U.S. goods by a combined value of over $1 trillion, the officials told Bloomberg, which was the first to report on the import boost offer.
The Gold markets pulled back a bit during the week, forming a somewhat negative looking candle stick in the face of the $1300 resistance barrier. I think at this point, if we can break above the $1300 level we will see quite bullish pressure.
The US dollar rallied a bit during the week, breaking above the top of the previous week which of course is a very bullish sign. However, I think there is plenty of resistance just above just waiting to get involved, showing signs of exhaustion will attract a lot of attention.
The British pound fell significantly to kick off the week but found enough support at the 1.27 level to turn around and bounce rather drastically. This is a very interesting turn of events, and I think we are in fact looking at a potential opportunity.
The British pound rallied significantly during the week after the vote on the Brexit, and hopes appearing that perhaps the Brexit will be delayed. This is short-term positive for the British pound, so obviously it carried over in this market as well.
The Euro pulled back a bit during the week, reaching towards the 1.1380 level. However, I do see a lot of support underneath and it’s possible that we will continue to see a lot of volatility. That being the case, it does look as if we are trying to form a bit of a rounded bottom.
The Australian dollar went back and forth during the week, testing the area just below the 0.7250 level. This is an area that of course is important as we have seen more than once, and with all of the headlines out there it’s not surprising that we continue to see a bit of hesitation.