Gold prices traded modestly lower during Monday’s APAC morning session because the US Dollar strengthened. The sudden plunge within the lira encouraged demand for safety, which pushed the haven-linked US Dollar, Japanese Yen and Swiss franc higher against the opposite G10 peers. A rising US Dollar weighed on valuable prices, with gold, silver and platinum falling -0.35%, -2.07% and -1.27% respectively.
On the opposite hand, the closely-eyed US 10-year Treasury yield retraced 3bps to 1.686% from last Friday’s close of 1.716%. As a result, the US real yield, represented by 10-year Treasury inflation-indexed security, has fallen to -0.62% from a 9-month high of -0.59%. Although a short lived pullback in real yields may serve to alleviate pressure on gold and other precious metals, the road ahead could also be bumpy as yields look set to continue their upward trajectory following last week’s FOMC meeting.
Fed Chair Jerome Powell reiterated his dovish stance and patience towards a transitory rise in inflation, but he showed reluctance to deal with rising longer-term borrowing costs. The financial institution also decided to let the exemption on capital rules to expire at the top of March, potentially leading banks to unwind a number of their Treasury holdings. this might point to an extra rise in yields and thus may undermine bullion prices. Looking ahead, Powell will give two testimony speeches in the week , which can be closely eyed for his rhetoric on inflation and yields.
The DXY US Dollar index, which tends to exhibit a negative relationship with gold prices, appears to be underpinned by weakness within the Euro as a 3rd viral wave hits Europe amid slowdown in vaccine rollout within the region. Commodity-linked Australian, Canadian dollar and therefore the Norwegian krone were weighed by falling petroleum prices recently, pointing to further strength within the Greenback. Against this backdrop, gold may struggle to seek out its way higher.
Crude oil prices began the week during a sour mood, as price struggled to carry up last Friday’s gains. A stronger US Dollar and energy demand concerns surrounding a replacement wave of lockdowns in Europe may still weigh down crude prices. WTI suffered an outsized 6% decline last week and dove below its 20-day SMA line for the primary time since November, signaling a near-term trend reversal. The OPEC meeting on 1st April may provide a clearer direction because the trust sets a forward guidance for its output plan into summer.
Gold prices have likely reversed higher into a minor “Ascending Channel” as highlighted within the chart below, signaling that near-term trend may have turned bullish. an instantaneous resistance level are often found at US$ 1,743 – the 23.6% Fibonacci retracement. Breaking above this level would likely intensify near-term buying pressure and open the door for further upside potential with an eye fixed on the 50-day SMA line. A failed attempt, however, may cause a pullback towards the 20-day SMA line.
Gold Price Technical Analysis
Gold prices have likely reversed higher into a minor “Ascending Channel” as highlighted within the chart below, signaling that near-term trend may have turned bullish. an instantaneous resistance level are often found at US$ 1,743 – the 23.6% Fibonacci retracement. Breaking above this level would likely intensify near-term buying pressure and open the door for further upside potential with an eye fixed on the 50-day SMA line. A failed attempt, however, may cause a pullback towards the 20-day SMA line.
Crude oil Technical Analysis
Crude oil prices did not breach the 200% Fibonacci extension level (66.50) and has since entered a technical correction. Prices dove below its 20-day SMA line for the primary time in four months, signaling a possible trend reversal. an instantaneous price are often found at the 50-day SMA line (58.65) whereas an instantaneous resistance are often seen at the 161.8% Fibonacci extension (62.19). The MACD indicator formed a bearish crossover and plunged sharply, suggesting that bearish momentum is dominating.
For More Details reagrding gold signals, comex trading signals, klse stock picks, sgx stock signals.
Subscribe To Money Life Research
No comments:
Post a Comment