Where is gold’s turning point? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

The latest move by the Federal Reserve has affirmed that tackling inflation is the number one priority of the Federal Reserve, even if it means bringing the US into what’s called a ‘hard’ landing. A hard landing is when growth is hindered so badly by rising interest rates that the economy comes to a sudden and abrupt halt as debt repayments increase, mortgage payments rise, property valuations sink, and stocks slide rapidly lower.

One commodity that is touted as a stagflation hedge is gold, but the surge in real yields and the USD has kept gold, silver, and platinum pressured. Nevertheless, gold can potentially gain in the stagflation environment.

How can seasonals potentially help you with timing your entries? Over the last 25 years, from the end of September to the start of December, gold has shown a mixed seasonal pattern. However, if we look at this pattern from December 24 to February 20 we can see that gold may show a positive outlook at this time of the year.

Major trade risks: If the USD and real yields stay firm then gold can continue to track lower despite its seasonal pattern.

Learn more about HYCM

Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.