Gold expected to see a gradual decline, says Richard Perry, Market Analyst for Hantec Markets, as he joins today’s Tip TV Finance Show along with Bill Hubard, Chief Economist for Bullion Capital, and Zak Mir, Technical Analyst at Zak’s Traders Café, to suggest the outlook for GBP/USD, EUR/USD and the yellow metal.
Expecting less rate hike from the Fed in 2016
Perry notes that the US saw a 25bps rate hike which was in line with market expectations, but dot plots remain the interesting element – factoring 4 hikes ahead. While the Fed futures price in two hikes in 2016, Perry notes that the US data and the Chinese Yuan’s inclusion in the SDR basket could bring some bad news for the US.
EUR/USD: 1.14 – 1.0456 range will stand
Perry doesn’t see any USD strengthening ahead. On the key levels for EUR/USD, he says that 1.08 is a key medium term support level for the pair, and the pair might see a test of lows but the downmove won’t last. Perry further believes that the 1.14 – 1.0456 range will remain unbroken for a few months.
GBP/USD: Sideways trade
Perry notes that the technical outlook for GBP/USD remains negative, but the pair will remain a sideways trade.
Gold: Below $1045 will see a move lower towards $1000
Perry highlights the key levels for the precious metal and further maintains a bearish bias on Gold prices, noting that the fundamental outlook – US tightening rates, and the lack of inflation, bodes bad for the yellow metal.
He sees downside potential towards $1000 if Gold prices break below the support at $1045, but he believes that the fall will be gradual and not a sudden one.
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