Gold strongest since mid-Nov, eyes 100-DMA

Dhwani Mehta FXStreet

Gold accelerates its bullish momentum into early Asia, as the traditional safe-haven asset remains in demand as we progress towards the UK PM May’s speech, which is expected to suggest a Hard-Brexit.

Gold on its way to $ 1230

Currently, gold jumps +1.30% to fresh nine-week highs of $ 1212, now eyeing a test of 100-DMA located at $ 1221.22. The renewed uptick in gold is mainly attributed to increased flight to safety as investors look to protect their capital from the UK PM May’s Brexit speech-induced market unrest, by parking funds in the ultimate safety bet gold.

Further, gold also benefits from prevalent risk-off mode in the market, indicated by heavy declines in the Asian equities and falling treasury yields. Meanwhile, the USD index slumps -0.50% to fresh three-day lows at 100.99.

Al eyes remain on the UK PM May’s speech on Brexit, which will determine whether the bulls will retain control going forward.

Comex Gold Technical Levels

The metal has an immediate resistance at 1215 (round figure) and 1221.22 (100-DMA). Meanwhile, the support stands at 1202.35 (5-DMA) below which doors could open for 1195.32 (daily S2).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD holds a constructive bullish tone above 1.3400 as UK political risk eases

The GBP/USD pair trades in positive territory around 1.3405 during the early European trading hours on Thursday. Fading political uncertainty in the United Kingdom provides some support to the British Pound against the US Dollar. Following the resignation of Keir Starmer in late June, UK political risk has eased significantly.

EUR/USD sticks to positive bias above 1.1400; Mideast tensions cap gains

The EUR/USD pair attracts some buyers for the second straight day, though it lacks follow-through and remains confined within the previous day's range during the Asian session on Thursday. Spot prices currently trade around the 1.1420 area, up less than 0.10% for the day, and remain at the mercy of the US Dollar price dynamics.

Gold sees more pain as Iran tensions revive inflation fears

Gold price reflects signs of softness on Thursday, trading 0.5% lower at around $4,056 during the Asian trading session. The precious metal is under pressure as Middle East hostilities have revived fears of high global inflation, a scenario that discourages major central banks from easing monetary conditions. This framework bodes well for interest-bearing assets, but diminishes the appeal of non-yielding assets, such as Gold.

Ripple and Stellar extend downside as weakening technicals

Ripple and Stellar extend losses on Thursday, correcting over 6% and 10%, respectively, so far this week. XRP falls below $1.090, while XLM posts a fifth consecutive day of correction and closes below key support levels.

2.50%: Why the Kiwi's first hike in three years is a wager on a number nobody can see

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points to 2.50% at 02:00 GMT on Wednesday, its first hike in three years and the moment the bank that cut deeper than any G10 peer last cycle turned to face the other way.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.