Gold: Bulls threatening to grasp control once more [Video]

Richard Perry Independent Analyst

Gold

The bulls are threatening to grasp control of the market once more. A decent gain on the day (of +$15) and a solid positive candle has pulled the market higher within the consolidation. Reaction around the initial resistance of $1722 will now be key. This has been a barrier for almost three weeks but with the market pulling clear above the $1702 pivot (which has been a consistent consolidation area for 12 sessions in a row) suggests that the bulls are stirring from their slumber. A mini two week uptrend is also now forming within the range. As the market has been steadily forming converging support and resistance levels over the past month, a move above $1722 could be significant. There is an interesting uptick on Stochastics this morning as an initial move, but there needs to be more on RSI and MACD lines to see more conviction. It is still too early to say that this is the time for an upside breakout, but the bulls are at least beginning to mobilise again as positive hourly momentum is building. A close above $1722 opens $1738 and the more considerable resistance of the multi-year high at $1746.

Author

Richard Perry

Independent Analyst

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.