Gold explodes into gains

6 January, 2017

Gold has exploded into gains this week with prices smashing into fresh monthly highs above $1184. The drivers behind the metals miraculous rebound were Dollar weakness and uncertainty over how Trump's policies may impact the US economy. With the lingering Brexit anxieties and rising political risks in Europe adding to the horrible cocktail of events which may trigger risk aversion, Gold could regain some of its safe-haven allure. Although investor’s anxiety could buoy the zero-yielding metal in the short term, gains could be capped from the prospects of higher US interest rates. A stabilizing Dollar should encourage sellers to exploit the technical bounce with targets stretching back towards $1130.

Silver bears on the prowl 

The price of Silver was dictated by the Dollar this week. The period of weakness seen in the Dollar has provided an opportunity for eager bullish investors to propel silver prices higher. Regardless of the short-term gains, Silver remains pressured on the daily charts with a breach back below $16 opening a path towards $15.50. Investors may pay very close attention to the first NFP report of the year which could leave Silver vulnerable to losses if the results exceed predictions.

WTI Oil hovers above $52

The sensitivity over OPEC and non-OPEC producers cutting oil production continues to expose oil prices to noticeable levels of volatility. Although the prospects of major oil producers cutting oil output have somewhat kept WTI buoyed, the concerns on the compliance side of the deal continue to cap upside gains. Much attention may be directed towards the pending OPEC compliance panel meeting on January 21st which may show if producers are actually trimming output. Any signs of members failing to fulfil their pledge to trim output could revive the oversupply fears consequently exposing oil prices to losses. WTI seems to be trapped in a tight $2 range with a breakdown back below $52 opening a path lows towards $50.

Source link  
Powell gives green light to interest rate cut

The S&P 500 reached a new milestone high on Wednesday breaking above 3000 for the first time ever as Fed Chair Jerome Powell...

Powell primes markets for July Fed rate cut

Fed chair Jerome Powell's latest dovish comments have removed market doubts over a US interest rate cut in July. Such signals have translated into...

Euro barely blinks on election results

The Euro has opened the new trading week marginally higher against the Greenback following initial results from the Parliamentary elections in Europe...

More bad news for Sterling as EURGBP

Backlash - that would be the word used to sum up the investor reaction from the latest attempt by UK Prime Minister Theresa May to push forward her...

EURJPY sinks to flash crash levels

A wave of risk aversion engulfed global equity and foreign exchange markets on Thursday after Donald Trump accused China of breaking...

US corporate earnings to drive global stock markets

Asian stocks, excluding Japan, are mixed on Monday, even after US stocks posted new record highs following the United States GDP report released at...

Mixed US corporate earnings reaction

Asian equities fluctuated mostly into the red on Friday, following the trend seen in their US counterparts on Thursday. As the latest US corporate earnings...

Brexit stalemate deepens

The drama, confusion and sheer uncertainty over Brexit intensified yesterday evening, after British MPs rejected all eight options aimed at...

Brexit chaos deepens

The British Pound fell yesterday afternoon, after the House of Commons Speaker John Bercow essentially banned Theresa May's Brexit deal from getting a third vote.


Share it on:   or