Will Gold lift into April? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

On Friday we have the US CORE PCE print. The personal consumption expenditures print measures the spending on goods and services by the citizens of the United States. Around 2012, the PCE index became the main inflation index used by the Federal Reserve to inform its policy decisions. This will be used as a key gauge as to how the Fed is doing in the battle against inflation.

If the headline for the CORE PCE print comes in below 4.5% then that will mean the Fed has to do less to hike rates and that should weaken the USD. That will also mean that gold can gain higher. Also, note that gold has a distinct pattern around the start of the month. In April gold tends to gain as the new month gets underway.

Major Trade Risks: The major trade risk here would be if the CORE PCE prints extremely high which would weaken gold. However, in that instance, it would not be unreasonable to expect medium-term buyers to step in from $1900.

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 extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.