|Day's Range||1,275.30 - 1,277.70|
Global equity markets fell on Monday as a U.S. crackdown on China's Huawei Technologies led chipmaker stocks in Europe and on Wall Street to slide on fears of a widening trade war, while the dollar was steady ahead of fresh insight on the Federal Reserve policies. China accused the United States of harboring "extravagant expectations" for a trade deal, underlining the gulf between the two sides as the U.S. action last week against Huawei began to hit the global tech sector.
Silver markets fell a bit during the trading session on Monday but turned around to show signs of support. The $14.40 level of course is crucial, but only from a short-term timeframe. I think that a bounce from here is probably going to offer a nice selling opportunity on signs of exhaustion, especially just above.
Crude oil markets try to rally a bit during the trading session on Monday, piercing above resistance, but failed to completely break out. At this point it looks like there is still a lot of interest in this market, but there is also a lot of work to do.
The natural gas markets rally during the trading session on Monday, reaching towards the vital $2.70 level. This is an area that features a gap from previous selling, so of course it will be important.
The gold market stabilized a bit during the trading session on Friday, reaching towards the $1275 level Overall. There is a significant amount of support underneath so therefore it’s not a huge surprise to see that we could continue to break down after a couple of negative sessions.
Based on the early price action, the support is a price cluster at $1273.30, $1272.70 and $1272.20. A sustained move over $1273.30 will indicate the presence of buyers. If this move generates enough upside momentum then look for a test of an uptrending Gann angle at $1279.30.
Based on the early trade and the last price at 2839.50, the direction of the June E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 2844.00.
The Greenback may fall in the near term from its top levels soon as US-Sino trade talks head in the wrong direction. The Canadian economy may benefit from the recent US Aluminum-Steel tariff cuts.
The return of domestic political turmoil in the United Kingdom has led to a flurry of selling momentum for the British Pound, which fell over 300 pips during the previous trading week.
The OPEC-led supply cuts have been the one constant underpinning crude oil prices since the first of the year. Although a decision to extend the program will not be made until OPEC and its allies meet in late June, today’s price action confirms that this is the main catalyst driving the rally. Additional support is being provided by the U.S. sanctions on Venezuela and Iran.
China have demanded an apology and called for a life-time ban on a referee who controversially awarded gold to a British competitor at the World Taekwondo Championships. China labelled it "a scandal" and "bizarre" after their Olympic champion Zheng Shuyin was disqualified from the women's +73kg heavyweight final in Manchester on Friday. Despite the home fighter Bianca Walkden winning, boos rang out when the prizes were awarded -- and Zheng, 25, slumped to her knees in tears on the podium.
Last week’s price action strongly indicates the U.S. Dollar is the biggest influence on the direction of gold prices. Gold prices could continue to get crushed if demand for the greenback rises from a combination of safe-haven demand and a strengthening U.S. economy.
If the buying is strong enough to take out $2.700 then this could create enough upside momentum to challenge a key 50% level at $2.762 over the near-term. This is likely to take place if the weather turn up the heat. If the forecasts shift back to more seasonal temperatures then sellers are likely to push prices back to $2.617 to $2.597.
For much of last week, it looked as if worries over supply disruptions were going to be the main price driver due to the relative calm being generated by renewed trade talks between the United States and China. However, this line of thought changed on Friday with the announcement that said the trade talks have stalled. It now looks as if demand fears amid a standoff in Sino-U.S. trade talks have re-entered the picture.
The Australian Dollar now has the dubious honour of being the worst-performing G10 currency so far this month, in the leadup to its federal elections on May 18.
The Toronto Stock Exchange's S&P/TSX fell 42.11 points, or 0.26 percent, to 16,401.75. * Leading the index were CAE Inc, up 14.6 percent, Alacer Gold Corp, up 4.4 percent, and Semafo Inc, higher by 3.4 percent. * Lagging shares were New Gold Inc, down 6.5 percent, Interfor Corp, down 4.0 percent, and Lundin Mining Corp, lower by 4.0 percent. * On the TSX 89 issues rose and 149 fell as a 0.6-to-1 ratio favored decliners. There were 23 new highs and 6 new lows, with total volume of 182.1 million shares. ...
Based on the current price at $62.89 and the intraday downside momentum, look for a potential break into the uptrending Gann angle at $62.35. If this fails then look for the selling to possibly extend into the short-term pivot at $61.96.
Robust growing USD Index pushed down all its major rivals. Hence, EUR/USD pair plunged despite positive Euro-specific data. Meanwhile, the Cable continued to douse in fall amid Brexit chaos.
Based on the earlier price action and the current price at 2877.50, the direction of the June E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the 50% level at 2880.50.
Gold futures fell Friday to tally a loss of 0.9% for the week and mark their lowest finish since May 2. Upbeat U.S. economic data, including a jump in consumer sentiment, as well as some strength in the dollar pressured prices for the haven metal. June gold lost $10.50, or 0.8%, to settle at $1,275.70 an ounce on Comex.
MUMBAI/BENGALURU (Reuters) - Gold was sold at a discount this week in India for the first time in 2-1/2 months as higher prices deterred jewellers and retail buyers, while currency fluctuations and economic worries triggered caution amongst buyers in other Asian hubs. Some are waiting for a correction," said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in Kolkata. Dealers offered a discount of about $2 an ounce over official domestic prices, versus a premium of $2.5 last week.
World share markets suffered a fresh bout of selling on Friday after tough words on trade from China, while bets on a new pro-Brexit leader in Britain sent the pound sliding to its worst week in well over a year. Shanghai finished 2.5% in the red and the yuan hit its weakest in nearly five months, amid growing fallout from President Donald Trump's move to block China's Huawei from buying vital American technology. The foreboding grew further as the Communist Party's People's Daily used a front page commentary on Friday to evoke the patriotic spirit of past conflicts, saying the trade war would never bring China down.