Investing.com - Metals traders will remain focused on the dollar this week after comments by U.S. President Donald Trump on interest rates stalled a rally in the greenback on Friday, offering some relief to gold, which recovered from one-year lows.
Investing.com - This week, investors will have a chance to see how the U.S. economy performed in the second quarter. Friday’s GDP report is expected to show that the economy rebounded in the three months to June, boosted by an increase in consumer spending.
This week’s price action in gold will once again be dictated by the direction of the U.S. Dollar. While rising Treasury yields could boost the dollar, additional tweets or comments from President Trump on monetary policy or tariffs on China could limit the dollar’s gains or even drive it lower. This would be supportive for gold prices.
Another big week ahead, U.S earnings, 2nd quarter GDP numbers, Trade wars and ECB monetary policy all in focus.
A bullish tone for the U.S. Dollar was set early in the week by hawkish testimony from Fed Chair Jerome Powell. President Trump’s comments topped the dollar and led to additional selling pressure that turned the Greenback lower for the week against a basket of currencies. The People’s Bank of China set the dollar’s reference rate at 6.7671 yuan, steering the currency 0.9 percent lower and weakening it the most in two years.The Australian Dollar finished slightly lower against the U.S. Dollar last week, but was supported by better than expected Employment Change data.
During the upcoming week, investors should watch to see if a few of the counter-trend rallies continue especially in the dollar-denominated markets like gold and crude oil.
Based on last week’s close at $1240.40, the direction of the December Comex Gold this week will be determined by trader reaction to the long-term, uptrending Gann angle at $1245.00.
Based on last week’s close at .7418, the direction of the AUD/USD this week will be determined by trader reaction to a pair of Gann angles at .7397 and .7430. The main trend is down according to the weekly swing chart. However, momentum has been trying to shift to the upside since the formation of the closing price reversal bottom at .7310 the week-ending July 6.
Gold markets spent the majority of the week falling but got a bit of a reprieve on Friday as Donald Trump suggested that interest rates in the United States should remain low, and perhaps rate hikes should be on hold. Of course, he doesn’t have that power so the market reacting the way it has on Friday is a bit of a head scratcher.
The US dollar rallied quite a bit during the week, reaching towards the ¥113 level before rolling over. The market found a significant amount of supply in that area, as was seen at the beginning of the year. I believe that the market needed to pull back anyway, it had gotten ahead of itself.
The British pound fell initially during the week, reaching below the 1.30 level. However, we have turned around of form a bit of a hammer again, showing just how important this level is. I think that the 1.30 level will continue to be an area where value hunters are willing to step in, and at this point one has to wonder who is left to sell this thing?
The British pound fell during the bulk of the week, in terms of Japanese yen. However, there seems to be a significant amount of support just below in the form of the ¥145 level, and we most certainly have not broken below there.
The EUR/USD pair spent most of the week falling, but early during the Friday session in New York, President Donald Trump tweeted that he wanted to persuade the Federal Reserve to keep interest rates low. Ultimately, this caused a major surge in the value of the Euro, turning around to form a bit of a hammer.
The Australian dollar spent most of the week soft but found enough support to turn around of form a hammer yet again. As you can see on the weekly chart, there have been multiple hammers over the last couple of weeks, so it’s obvious to me that there is a massive amount of support just below.
Gold markets rally during the trading session on Friday, breaking towards the $1230 level before running into a bit of resistance. The market had been oversold to begin with, so when Donald Trump suggested that interest rates in America needed to stay lower, that sparked a US dollar selloff.
The US dollar fell off a cliff during early trading on Friday in the United States, as President Donald Trump suggested that other currencies around the world were far too cheap and that while the United States was raising interest rates, they were keeping interest rates far too low. Traders saw this as an opportunity to sell the US dollar, as perhaps a sign that he would keep interest rates from rising. Here’s a hint: he doesn’t have that power.
The GBP/USD pair rallied rather significantly during the trading session on Friday, reaching towards a critical supply area near the 1.3075 handle after Donald Trump tweeted that the US dollar was being unfairly strengthened as interest rates around the world it remained far too low. For some reason, market participants read this as a sign that interest rates were going to be put on hold in the United States. The funny thing is, he doesn’t have that power and just ½ an hour before one of the Federal Reserve governors reiterated the need to continue to raise rates.
The British pound fell again during the day on Friday in the Japanese yen terms, as we reached towards a significant support area in the form of ¥146 and uptrend line. At this point, I think that we are trying to build up enough momentum to bounce, but I also recognize how precarious the situation could be.
The EUR/USD pair was having a fairly quiet Friday, that was until President Donald Trump tweeted that the US dollar was being unfairly strengthened due to soft economic policy by the EU, Japan, and many other countries. Ultimately, I find this a bit ironic, considering that he doesn’t have the power to change monetary policy.
The Australian dollar jumped during the trading session on Friday, after finding support yet again near the 0.7325 handle. Beyond that, President Trump tweeted that he thought of the central banks around the world were taken advantage of keeping interest rates lower while the United States continue to raise theirs. Traders around the world thought this was a signal the perhaps we were stepping away from interest rate hikes at the Federal Reserve, something that the President has no control over.
Investing.com – Metal prices were higher Friday as the dollar moved sharply lower after President Donald Trump said higher interest rates and the strength of the greenback were hampering economic growth.
Bitcoin’s revival hit a speed bump Friday afternoon as the No. 1 digital currency turned lower, putting a milestone in jeopardy.
The dollar moved lower following commentary from President Donald Trump who did and interview and a follow up tweet describing his displeasure with the rise in interest rates, along with the rise in the dollar. This helped gold prices gain a foot hold and move higher. Gold prices were unable to take out the prior days lows and has generate a reversal pattern that could test higher prices.
Elsewhere, the Australian dollar was higher, with AUD/USD up 0.83% at 0.7416, while NZD/USD rose 0.85% to 0.6801. The loonie was higher against the greenback, with USD/CAD down 1.11% to 1.3125.
Gold prices rose on Friday as U.S. President Donald Trump criticized the Federal Reserve for increasing interest rates. Comex gold futures for August delivery rose 0.47% to $1,229.70 a troy ounce as of 10:29 AM ET (14:29 GMT). Trump said in an interview on CNBC that he does not approve of how the Fed is approaching monetary policy.