Gold price is under pressure as investors assess the impact of the Omicron variant and the hawkish Federal Reserve. It dropped for the second straight day and moved below the support at $1,800, which was the lowest level since December 22nd. Bitcoin has also declined in the past two straight days. Thin volumes may have contributed to the ongoing weakness in gold and Bitcoin. The decline is also likely because investors are positioning themselves for the eventual tightening of the Federal Reserve. In the previous meeting, the bank committed to implement three rate hikes in 2022 and end its quantitative easing policy.
US futures edged up slightly as the Santa Claus rally continued. Futures contracts linked to the S&P 500 and Dow Jones rose by less than 0.5%. The same trend happened in Europe, where the Stoxx 600 index surged to a record high. On Tuesday, the US reported a record 267k Covid-19 cases, with most of the patients having the Omicron variant. While the number of daily cases has jumped sharply recently, there is hope since only a small number of patients are requiring hospitalization. Also, the number of deaths has not changed dramatically as the number of cases has increased.
The price of crude oil was little changed on Wednesday as investors reflected on the latest inventories data by the American Petroleum Institute (API). The data showed that the country’s inventories had a drawdown of about 3.09 million barrels, which was lower than the previous drawdown of 3.67 million. Analysts were expecting that the drawdown declined to 3.23 million barrels. The Energy Information Administration (EIA) will publish its estimate later today.
XBR/USD
The XBRUSD pair has been in a tight range recently as thin volumes remain. The pair is trading at 78.34, which is slightly below this week’s high of 79.35. On the four-hour chart, the pair is slightly above the key support level at 75.47, which was the highest level on December 17th. It was also the neckline of the inverted head and shoulders pattern. It is also slightly above the 25-day moving average. Therefore, the pair will likely keep rising ahead of the OPEC+ meeting.
EUR/USD
The EURUSD pair declined sharply and then pared back some of the losses today. The pair is trading at 1.1300, which is slightly above the intraday low of 1.1275. On the four-hour chart, the pair is still between the horizontal channel where it has been recently. The price is also slightly below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has also been falling. Therefore, the pair will likely remain in this range.
XAU/USD
The XAUUSD pair declined to a low of 1,794, which was the lowest level in two weeks. On the four-hour chart, the pair declined below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has dropped close to the oversold level of 30. It has also moved to the lower side of the rising channel. The pair will likely bounce back and retest the upper side of the channel.
General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
AUD/USD consolidates near two-week high, looks to US NFP for fresh impetus
AUD/USD holds steady around the 0.6335 area during the Asian session on Friday as traders now await the US NFP report. Bets that the Fed will cut rates further amid concerns over failing US economic growth keep the USD depressed near a multi-month low and act as a tailwind for spot prices, though tariff jitters warrant caution for bulls.
USD/JPY: Japanese Yen stands firm near a multi-month high against a broadly weaker USD
The Japanese Yen continues to be underpinned by increasing bets for more BoJ rate hikes. Trade tariff jitters and the risk-off mood further seem to underpin demand for the safe-haven JPY. Expectations for further policy easing by the Fed weigh on the USD and the USD/JPY pair.
Gold price remains depressed ahead of US NFP; trade jitters to limit losses
Gold price trades with negative bias for the second straight day, though a combination of factors continues to act as a tailwind ahead of the crucial US NFP report later this Friday. Rising trade tensions continue to weigh on investors' sentiment.
Crypto AI Tokens: Why FET, NEAR and RNDR could outperform BTC after White House Summit
The White House Crypto Summit is scheduled to hold on Friday. Rather than double-down on BTC, sector-wide price trends show that investors are leaning towards Crypto AI altcoins.
Make Europe great again? Germany’s fiscal shift is redefining the European investment playbook
For years, Europe has been synonymous with slow growth, fiscal austerity, and an overreliance on monetary policy to keep its economic engine running. But a major shift is now underway. Germany, long the poster child of fiscal discipline, is cracking open the purse strings, and the ripple effects could be huge.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.