Naeem Aslam
Zaye Capital Markets
Gold
Gold prices are still struggling to attract bids, and the path of the least resistance seems skewed to the downside for the time being. The reason is that on Friday, the US NFP data confirmed that the US economy is faring well, and traders do not need to worry about a hard landing. The data was robust, and the number was solid, and this has increased the odds that the Fed will keep a hawkish monetary policy in place, proving to be a positive thing for the US dollar index. The strength in the dollar index is causing the gold price to move lower.
Traders have been hoping that the Fed will shift its gear from an ultra-hawkish monetary policy stance to a somewhat hawkish stance. However, the US NFP data has put cold water on those hopes as the Fed watches those numbers very closely. So overall, no good story can support a bull case for gold prices.
In terms of technical, the shinning metal is struggling to move higher above the 50-day SMA, a sign of weakness for price action. If we do not see the price moving above this average, it is possible that the path of the least resistance could remain skewed to the downside.
The information is purely for education purposes only and cannot be perceived as an advise.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.