|Day's Range||15.270 - 15.291|
* The Shanghai Futures Exchange (ShFE), one of China's biggest commodity derivatives markets, is to end its current system of determining margin requirements based on the size of an investor's position, it said on Tuesday. * In futures trading margin refers to the minimum amount of capital that must be deposited in an investor's account in order to trade. * The new system, to take effect from March 18 as part of a change to ShFE's risk-management measures, will stipulate a fixed trading margin for each traded commodity.
Precious metals trade positive on increased safe-haven demand as US Dollar failed to make sharp gains owing to bearish pressure from U.S. political woes and dovish Fed stance.
Based on last week’s price action and the close at .7165, the direction of the AUD/USD this week will be determined by trader reaction to the 50% level at .7221.
The British pound pulled back initially during the trading session on Monday but found enough support underneath to turn around and it stabilized a bit. We are right at the 50 day EMA, and more importantly the ¥141 level. This is an area that has been important more than once.
Natural gas prices dropped on Monday, in a shorten session due to the US MLK holiday. Prices retraced some of the gains experienced in the tail end of the Friday session ahead of the long weekend. Colder than normal weather is expected to cover most of the mid-west and east coast for the next 2-week which should substantially reduce inventories. The prediction from the National Oceanic Atmospheric Administration shows that some areas of the mid-west will experience brutal temperatures. Heating demand will be increase significantly putting downward pressure on inventories.Technical Analysis
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Gold continues to trade positive supported by steady demand from European markets as investors remain cautious over ongoing political debacle and Brexit proceedings.
The gold prices have pulled back in the Friday’s session, reaching down to the $1280 level which is offering a bit of support. The market will continue to be bullish in the long term as the Federal Reserve is likely to go easy on rate hikes. The silver market has entered a bearish territory of the trend by breaking below the supportive $15.50 level.
The US dollar has rallied again during the trading session on Friday, breaking above the top of the neutral candle stick for Thursday, which of course is a bullish sign. However, longer-term we have to look at the totality of the picture, and therefore I think the upside might still be somewhat limited.
Silver markets pulled back a bit during the trading session on Thursday, as we approach the 20 day EMA. This of course is a supportive moving average, and an area where I think a lot of people will be interested in the markets.
The US dollar has pulled back during early trading on Thursday, as the ¥109 level has offered significant resistance. By pulling back the way it has, the market looks very likely to continue to chop between the 100 a young level underneath and the ¥109 level above.
Safe haven demand sustains gold bulls as headlines continues to inspires risk averse trading activity in major global markets.
Gold prices moved higher on Wednesday ahead of the no confidence vote in the UK. While May is widely expected to remain the Prime Minister, there is no clear cut plan on how to move forward. UK core inflation came in stronger than expected but the headline remains soft due to declining petroleum prices. Medium term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.
Based on the early price action, the direction of the March E-mini NASDAQ-100 Index futures contract the rest of the session is likely to be determined by trader reaction to a pair of Gann angles at 6713.00 and 6716.50.
A round of better than expected bank earnings has the US equity futures moving higher in the early morning session. The financial sector led the EU market at midday with gains averaging 1.0%. The Shanghai Composite closed with no movement, 0.0%, for the day while the Hong Kong Heng Seng and Shenzen markets both saw small gains.
Yesterday Theresa May suffered a great defeat in the Parliament Brexit vote. It caused high volatility of the GBP. However, the British currency still has chances to recover
The gold prices are continuing its move around the $1290 level as it is facing extreme resistance in breaking above the psychologically important $1300 level. If it breaks above the $1300 level, then it can reach towards the $1400 level in the long term, with some selling at every $25 until it reaches there. The $1250 level underneath is strong and hard support for the market and is unlikely to breach. …Read MoreSilver
Natural gas prices whipsawed consolidating Monday’s gain as colder than normal weather continues to forecast higher heating demand. The weather over the next 2-weeks is expected to be much colder than normal throughout most of the mid-west according to the latest forecast from the National Oceanic atmospheric Administration. Supplies of natural gas are rising but they are offset by higher LNG exports. The cold weather will continue to add to the upside risks.Technical Analysis
The silver market went back and forth during the trading session on Tuesday, as we continue to see a lot of noise. The silver market will continue to be very noisy, but I do think that we are winding up for a bigger move.
The major indices were indicated to open higher to start but quickly gave up those gains after the release of earnings from JP Morgan. In the EU markets were cautious on the expectation the UK Parliament would not accept Theresa May’s contentious Brexit deal.
The recent breakouts beyond key resistance levels on the charts used to follow the precious metals market suggest that prices are headed higher.
Gold trades in red on profit booking activity and high risk appetite but downside was limited owing to caution surrounding brexit.
Silver markets continue to grind a bit sideways during the trading session on Monday, as we try to build up enough momentum to continue the upward move that we have seen over the last couple of weeks.
The US dollar has fallen against the Japanese yen during the trading session on Monday as traders came back to work. Ultimately, it looks as if the ¥108 level will offer support though, so I think that there is a lot of interest in this area.