|Day's Range||1,233.30 - 1,236.50|
Oil prices plunged about 5 percent to two-month lows as the equities sell-off raised worries about demand growth and Saudi Arabia said it could supply more crude quickly if needed, easing concerns ahead of U.S. sanctions on Iran.
Gold prices nudged up on Wednesday after hitting their highest in over three months in the previous session, with international political and economic uncertainty underpinning safe-haven demand for the metal. * U.S. gold futures were down 0.2 percent at $1,234.20 an ounce. * President Donald Trump said on Tuesday that Saudi authorities staged the "worst cover-up ever" in the killing of prominent journalist Jamal Khashoggi this month, as the United States vowed to revoke the visas of some of those believed to be responsible.
Based on Tuesday’s close at .7085, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to yesterday’s high at .7091.
Fluctuations in the price of gold are driven by a slew of different factors. Here's how the relationships between gold and these factors generally tend to work: 1) When interest rates are rising, gold prices will often fall because gold is non-interest bearing. As a result, when the dollar rises in value, gold prices tend to fall, and vice versa.
Often averaging more than 2 million contracts a day on the Chicago Mercantile Exchange (CME), the S&P E-mini futures are by far the most heavily traded futures instrument. Due in part to their popularity, S&P futures contracts also serve as most equity trader’s first read on the upcoming day’s market. Firstly, while most traders refer to equity contracts as E-mini futures, E-minis are actually traded throughout most futures markets and simply refer to electronically-traded products that represent a fraction of a full futures contract.
Gold prices climbed Tuesday to settle at their highest in about three months, with sharp losses in global stock markets and a drop in U.S. Treasury yields feeding investment demand for the precious metal. December gold added $12.20, or 1%, to settle at $1,236.80 an ounce. That was the highest finish for a most-active contract since July 16, according to FactSet data.
Analysts’ Views: Is It Time to Look at Gold Miners? As we discussed in Could Investors’ Rotation amid the Sell-Off Benefit Gold Miners? gold miners have started looking inexpensive compared to broader equities. The average ratio of the NYSE Arca Gold Miners Index (GDX) and the S&P 500 Index (SPY) is 0.20 compared to the ten-year average of 0.68. Among the gold mining companies under review (GDX), Agnico Eagle Mines (AEM) and Goldcorp (GG) meet most of these criteria.
The first video from our Analytical team this week starts with the analysis of the Gold, where we do have a new buy signal as we speak. The price eventually broke the upper line of the pennant and went higher. The second instrument is the USDJPY, which wasted a great chance for a buy signal.
Global stock markets trade lower on Tuesday morning as the Chinese rally fades and on increased geopolitical tensions.
After consolidating in a tight range for over a week, gold is finally breaking out to the upside early Tuesday. The size of the rally today will likely be determined by the volatility and the direction of U.S. equity markets as well as whether the breakout is being fueled by short-covering, new buying or a combination of the two.
Later on Tuesday, the American Petroleum Institute is set to release it estimates of weekly inventories. Crude oil stocks are seen up by 3.550 million barrels, while gasoline supplies are seen down 1.797 million barrels and distillates down by 2.375 million barrels.
Geopolitical tensions are escalatinggeopoliticaland that has brought safe-haven buying resulting positive price action in both gold and silver despite broad-based firm USD in global markets.
Based on Monday’s close at 2756.50 and the earlier price action, the direction of the December E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the main 50% level at 2748.50.
Gold markets drifted a bit lower during the trading session on Monday, reaching down towards the $1220 level. This is an area that of course is rather supportive, as we have seen the market bounce from here a couple of times recently.
Based on yesterday’s close at $1224.60 and the early price action, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the main 50% level at $1222.70.
Based on Monday’s dramatic reversal to the downside, the direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to the main bottom at 1.1433.
The city of Ephrata, Washington, will halt new crypto mining developments in the city for the next 12 months, Eastern Washington and North Idaho daily newspaper The Spokesman Review reports Friday, Oct. 19. The recently announced suspension will only affect new crypto operations from being established in Ephrata, while the existing four businesses already there will continue operating. According to Ephrata city administrator Wes Crago, those four crypto operations — including two at the Port of Ephrata, one in an industrial area of the city, as well as one in a residential area — are being relocated at the moment.
Fresh economic data will be sparse next week so gold traders are likely to continue to respond to the movement in Treasury yields, the direction of the U.S. Dollar and stock market volatility. Gold could start to feel pressure if yields rise and the stock market remains steady. This will be a sign that investors have priced in a few of the Fed’s future rate hikes.
Based on Friday’s close at $3.309, the direction of the December Natural Gas futures contract is likely to be determined by trader reaction to the pivot at $3.306.
Silver markets went back and forth during the week, forming a bit of a neutral candle. This is a good sign though, because we are trying to form a bit of a base in the silver market. Ultimately, I believe that we will break out, but it’s going to take a bit of grinding sideways before doing so.
Gold markets rallied a bit for the week, as we have cleared the recent consolidation and it now looks like the rally is going to continue. The $1250 level above looks to be rather resistive and perhaps a nice target for the time being.
The Euro is looking for a bottom on the longer-term charts, and as you can see on the accompanying chart, I have a yellow circle around the massive hammer underneath the 1.1450 level. That’s an area that I think continues to hold this market up, so this point I would expect a bit of a bounce.