Gold: XAU/USD run higher has been put on ice ahead of the FOMC [Video]

Richard Perry Independent Analyst

Gold

A renewed gold run higher has just been put on ice for now as markets begin to consolidate ahead of the FOMC meeting. Initial gains were tempered yesterday and a “doji” candlestick (denotes uncertainty) was completed. We have seen a more constructive outlook for gold in the past week, but the shackles are still on the run higher. A dovish FOMC shift would allow gold to release higher. Technically, the indicators are primed for upside, with MACD lines ready to cross higher, whilst Stochastics and RSI are tentatively positioned for a bull run. Initial resistance is now $1972. The hourly chart shows a run of higher lows forming in recent sessions, where we see any supported weakness into $1940/$1955 band being a chance to buy for pressure towards $1992/$2015. Below $1937 we see the immediate bullish outlook is put on hold, A close below $1926 would be a worrying signal for the bulls.

Author

Richard Perry

Independent Analyst

Richard Perry, Independent Market Analyst, has over 20 years of experience working in financial markets in London.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold bulls seem hesitant below $4,500 amid modest USD bounce ahead of US NFP

Gold remains on the defensive below the $4,500 mark through the Asian session, snapping a two-day winning streak amid a modest US Dollar uptick. The commodity, however, remains close to the weekly high, which it touched the previous day, as traders keenly await the release of the closely watched US monthly employment details. The popularly known US Nonfarm Payrolls (NFP) report will provide more cues about the Fed's policy path amid receding bets of a September rate hike.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

US August Nonfarm Payrolls expected to rebound to 58K after July slump

The United States Bureau of Labor Statistics is set to release the Nonfarm Payrolls data for August on Friday at 12:30 GMT. Investors expect NFP to rise by 58K in August following July’s unexpected print of -23K. The Unemployment Rate is seen holding steady at 4.1%.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.