XAUUSD, Daily
The Greenback has continued its decline this week and the main beneficiaries have been the key commodities of Gold and Silver. Last night’s FOMC minutes added to the negative sentiment for the USD this week. The Doves on the committee were suggesting that weak inflation may not be transitory and caution in raising rates. However, the December rate hike is now “baked in” to expectations and only a significant weakening of the data stream and some major shocks from the current Earnings round would be required to stall the move. GOLD and Silver both triggered LONG positions on the DAILY timeframe on Monday and Gold hit T1 yesterday for a net gain of $10.40 or 1040 pips. I discussed both positions with our live audience at our latest Seminar in Johannesburg on Tuesday evening. More Live seminars next week in South Africa in Durban and Cape Town, join us if you can.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
AUD/USD could extend the recovery to 0.6500 and above
The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.