Gold: Stronger USD is a short-term blip – ANZ

FXStreet Team FXStreet

Investment demand for gold is holding up despite bouts of liquidation, with outflows from gold-backed ETFs increasing. The stronger USD and rising real rates have suppressed investor appetite, but strategists at ANZ Bank believe gold’s safe haven appeal will remain strong because of renewed volatility in the equity market and ongoing macro and geopolitical uncertainty. XAU/USD is extending the recovery to $1875 amid the dollar’s pullback.

Key quotes

“A stronger USD and fading prospects of a fresh stimulus package before the US election have triggered a sell-off. Nevertheless, all-time low yields, elevated inflation expectations, accommodative central banks and renewed volatility in the equity market all bode well for the sector.”

“Investment demand for gold is still holding up, despite bouts of liquidation in goldbacked ETFs. Physical demand in Asian markets is improving with imports rising in both India and China ahead of festival seasons.”

“Investors have turned their attention to PGMs, with rising net ETF inflows. We expect platinum to benefit from being cheaper than palladium and from a spill-over from a stronger gold price. A weakening recovery in automobile sales could be a headwind for palladium prices.”

Author

FXStreet Team

FXStreet

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold buyers hesitate amid holiday-thinned trading

Gold trades volatile, but within range, as US, China holidays-led thin trading exaggerates moves. The US Dollar extends range play into the US GDP week, with markets pricing at least two Fed rate cuts this year. Technically, Gold tests key support at $5,000; daily RSI still remains bullish.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.