2020-10-05 • Updated
The yellow metal is boosted by the poor performance of the USD. What is the forecast?
On Friday, US President Donald Trump announced that he had been positively tested on Covid-19. As a result, the market sentiment deteriorated immediately. Then, the downbeat NFP came out, driving safe-haven currencies to the upside, especially the Japanese yen and the US dollar.
However, today investors have been encouraged by optimistic comments on Trump’s recovery, their confidence strengthened. Consequently, the greenback waned and gold rose. Indeed, the main driver of XAU/USD is the dollar, which is quite volatile amid upcoming presidential elections, which are scheduled for November 3. Besides, continuing fiscal stimulus talks weigh on the market sentiment. Republicans argue for $1.5 trillion, while Democrats insist on $2.2 trillion.
“There is need for new stimulus measures to rally (gold) prices. Without this mojo, there are signs of fatigue creeping into precious metals,” according to Phillip Futures.
Gold has approached a key resistance of $ 1910. This level was acting as strong support since August, but now it plays a role of resistance. If it manages to break it, the doors towards the upper trendline at $1 920 will be open. The way above $1 920 will confirm further bullish momentum and drive the yellow metal upwards to a high of early August at $1 940. On the flip side, if it falls below the key psychological mark of $1 900, the way to September’s dips of $1 850 will be clear.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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