Investing.com - This week precious metals traders will be watching developments around global trade tensions and geopolitical risks, as well as moves in the U.S. dollar, after gold prices ended higher on Friday, notching up a weekly gain of more than 1%.
Gold futures may have formed a major bottom last week with the rally being fueled by a weaker U.S. Dollar. The technically bearish chart pattern formed by the dollar on the weekly chart suggests a major top may have been reached and this could trigger a strong surge in gold prices. It’s not the weaker U.S. Dollar per se that is supporting gold, but the catalysts behind the greenback’s weakness.
Geo-politics will remain center stage with Britain and Italy heading to their final showdowns, while trade talk chatter will also influence.
Was the latest breakdown to new cycle lows in the EURUSD pair just a false one, or are we going to see a continuation of a longer-term bearish trend?
The combination of the tame inflation report, comments from Fed Chair Powell on cooling global demand and the dovish comments from Fed Vice Chair Clarida stating the Fed is getting closer to neutral, are all signs the Fed may slow its pace of rate hikes and this should be bearish for the U.S. Dollar.
Based on last week’s close at $1223.00, the direction of the December Comex Gold market next this week is likely to be determined by trader reaction to the first intermediate 50% level at $1222.70.
Based on last week’s close at .7332, the direction of the AUD/USD this week is likely to be determined by trader reaction to the Fibonacci level at .7307. The main trend is up according to the weekly swing chart. The trend turned up last week on a move through .7314. The next main top target is .7484. The trend will change to down on a trade through .7020.
Investing.com - Theresa May could be fighting for her political survival, but the Brexit crisis she's in has thrown gold bulls a lifeline.
Bitcoin prices are trading marginally higher on Friday, but set to book its second consecutive losing week after the recent rout.
It’s hard to imagine a more chaotic run-up to Britain’s exit from the European Union. Here’s why investors can’t ignore it.
The U.S. dollar sells off versus its major rivals on Friday, after Federal Reserve Vice Chairman Richard Clarida offers some dovish comments. The ailing buck gives more room to rebound to the British pound, which recovers from its worst one-day performance in more than two years on Thursday.
In could be a tense weekend for currency traders and others keeping a close eye on the political turmoil surrounding the British government’s efforts to negotiate its exit from the European Union.
Gold prices surged higher on Friday as the dollar eased against most major currencies. Friday softer than expected industrial production, appears to be the catalyst that drove yields lower. Gold prices surged higher on Friday rising up to resistance near the 20-day moving average at 1,222.
Investing.com - Gold prices surged on Friday as American officials dashed hopes for an imminent solution to trade tensions between China and the U.S. and the dollar suffered from dovish comments from the Federal Reserve and a bearish call from Morgan Stanley (NYSE:MS).
The Gold markets bounced from the trendline during the week, and the structurally important $1200 level. This could mean something big, however there are a lot of questions to be answered.
The US dollar fell significantly against the Japanese yen during the week, as we continue to struggle with the ¥114.50 level above. That’s an area that shows resistance all the way to the 115 young level, so it makes sense that we would struggle to break above there.
The British pound continue to go back and forth during the trading sessions that made up the previous week, as we have so much in the way of confusion out there. As long as the Brexit is still a question, this will continue to be the way forward.
The British pound initially tried to rally during the week but found enough resistance at the previous downtrend line to roll over again. It looks as if we are starting to trace out a descending channel, which of course is negative.
The Euro fell initially during the week, reaching down well below the 1.13 level, but by the time we got to the Friday session, the market had turned around completely to form a hammer. What does this tell us? It’s hard to tell but I think consolidation is key.
The Australian dollar pulled back a bit during the week, breaking down towards the 0.7150 level. We bounced from there to break above the 0.73 level during Friday trading, but there is a lot of bearish pressure just above.
Gold markets rallied again during the trading session on Friday, breaking above the 50 day EMA. Ultimately, I think that the market probably goes looking towards the $1250 level. At this point, it’s likely that we are paying attention to the uptrend line.
The US dollar fell during the trading session on Friday against the Japanese yen, breaking the back of a hammer from the Thursday session, which of course is a negative sign. However, there is plenty of support underneath.
The British pound has bounced a bit during the trading session on Friday, as the 1.27 level has offered a significant amount of support more than once. That is an area where we will see a major fight, but if we were to break down below there, we could go much lower.