|Day's Range||1,555.90 - 1,568.80|
Some thought mounting concerns over the coronavirus outbreak in China might be having an impact given the threat of contagion as hundreds of millions travel for the Lunar New Year holidays. While the trigger was uncertain, the price action was clear enough with MSCI's broadest index of Asia-Pacific shares outside Japan slipping 0.9%. Japan's Nikkei lost 0.8% and Shanghai blue chips shed 0.9%.
Asian shares took a sudden turn for the worse on Tuesday as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets. Safe-haven bonds and the yen edged higher as investors were reminded of the economic damage done by the SARS virus in 2003, particularly given the threat of contagion as hundreds of millions travel for the Lunar New Year holidays. The mood swing saw MSCI's broadest index of Asia-Pacific shares outside Japan slip 1% after a steady start.
Gold markets did very little during the trading session on Monday, as the Americans were celebrating Martin Luther King Jr. Day. That being said, we are at extreme highs and it looks like we are ready to “kill time” in order to build up pressure again.
The Australian dollar initially tried to rally during the trading session on Monday but found trouble at the 200 day EMA. The market has broken down towards the 50 day EMA which of course should show support.
Natural gas slumped to a four-year low on Monday. This the lowest seasonal price on record going back to 1990 has been driven by the continued absence of cold U.S. winter weather to drive demand from utilities towards heating. The route to salvation for this very important fuel increasingly have to come from companies cutting production, either voluntary or involuntary
While I spend many hours a day scouring through Forex charts, the charts related to these two markets have caught my eye.
Gold prices have hit record highs already this year and for investors wanting a piece of the action Serabi Gold looks like a good bet.The firm has been quietly accumulating assets in Brazil and, as a result, its share price has risen steadily over the past few years.
The direction of the February Comex gold market the rest of the session on Monday will be determined by trader reaction to the minor top at $1564.20.
The COT report covering the week to January 14 showed the hedge funds reaction to Middle East deescalation with crude oil and gold longs being cut. The imminent signing of the U.S. – China trade deal meanwhile helped drive demand for industrial metals and agriculture commodities.
GBP/USD attempted to recover higher last week but sellers stepped in after a weak UK retail sales report that encouraged rate cut speculation.
With only a couple of data releases amidst the Fed’s communication blackout period, this holiday-shortened week looks to be relatively lackluster from the US economics perspective.
Most of the news last week was U.S. Dollar friendly, which tends to weigh on demand for dollar-denominated gold. U.S. Treasury yields rose and the major stock indexes hit record highs several times. All of these events tend to keep a lid on gold prices or even drive them lower.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.25% on Monday after rising to its highest since June 2018. Japan's Nikkei gained 0.2% to near its highest in 15 months. U.S. corporate earnings this week include Netflix, Intel Corp and Texas Instruments, while the European Central Bank, Bank of Canada and Bank of Japan hold policy meetings.
The relationship between Isabel dos Santos and Dolce & Gabbana runs deeper than her inclusion among Dolce’s “muses.”
Venezuela’s economic and humanitarian crisis continues as Maduro clings onto power, but his latest attempt to seize full control of the oil & gas industry has been fruitless
The chart pattern is pretty clear. Value-seeking buyers have to continue to come in at $57.79 to $55.99 to defend against a steep sell-off. If successful, we could see an eventual move into the short-term retracement zone at $61.41 to $62.35.
Based on Friday’s price action and the close at $1560.30, the direction of the February Comex gold futures contract on Monday is likely to be determined by trader reaction to the minor top at $1564.20.