Gold and Silver break key support – Where to next? [Video]
![Gold and Silver break key support – Where to next? [Video]](https://editorial.fxsstatic.com/images/i/Commodities_Silver-2.jpg)
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Kim Cramer Larsson
KCL Consult
Kim Cramer Larsson hosts the Daily Technical Update, a daily 15-20 minutes video with live charts.
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AUD/USD is defending 0.7000 at the start of a new week, trading near its lowest level since August 4 amid a bullish US Dollar. US yields hold near multi-year highs amid inflation risks from higher oil prices and rising bets on an October Fed rate hike. This, along with the US-Iran standoff, continues to underpin the safe-haven buck and weigh on the pair ahead of Tuesday's RBA policy announcements.
USD/JPY finds dip-buyers and reverses part of Friday's slide driven by speculation that authorities will step in again to prop up the Japanese Yen. However, the BoJ's dovish Minutes cap the JPY. Meanwhile, the US Dollar regains traction as the US-Iran standoff supports crude oil prices, fueling inflation fears and reaffirming bets for an October Fed rate hike. This further supports the pair, driving it back toward 158.00.
Gold is falling hard at the start of a new week, approaching $4,150 for the first time in eight weeks. Firming October Fed rate-hike bets, along with oil-driven inflation risks, keep US bond yields elevated near multi-year highs, helping the US Dollar hold firm, particularly after Trump rejected Iran's truce offer. These factors weigh heavily on the bullion.
Cardano shows signs of consolidation, trading below $0.260 after an 11% gain the previous week. Mixed derivatives and on-chain metrics point to caution among traders. Meanwhile, the technical outlook suggests bullish sentiment remains, but ADA’s near-term direction remains uncertain. Derivatives data shows a mixed and cautious outlook among Cardano traders.
The Dollar index has dipped after testing resistance and could dip for the next few sessions while Euro can rise from here. USDJPY has dipped below 158 and is headed towards 157/156 while EURJPY can trade within 181-178 region for the near term. USDINR has mild scope of testing 95.50 while below 96 but looks eventually bullish for a rise.
The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.
