Gold Trades Below Resistance Ahead of the Fed and NFP

1 February, 2017

We will see the release of the US ISM Manufacturing PMI, and ISM Prices Paid for January, at 15:00 GMT on Wednesday 1st February.

The Fed will release Monetary Policy statement and interest rate decision at 19:00 GMT on the same day.

Trump’s stance is in favour of a weak dollar, therefore the changes of the Fed’s economic projections and the performance of the upcoming Non-Farm payroll figure will be influential to dollar strength.

On the 4 hourly chart, gold sot is trading below the near term major resistance level at 1200, where the 50 SMA converges. The selling pressure is heavier above the level.

The 4 hourly Stochastic Oscillator is crossing over from above, suggesting a further retracement.

The resistance level is at 1200, followed by 1205 and 1210.
The support line is at 1195, followed by 1190 and 1185.

Keep an eye on Fed’s statement on Wednesday, and the NFP figure on Friday, as they will influence the strength of the dollar, dollar crosses and precious metals.


Source link  
Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...

Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...


Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

Risk-sensitive currencies on the rise

Stock markets show growth after the release of strong data for China and Japan as their respective PMIs were better than expected which supported...

Trump again puts pressure on OPEC

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year...


Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback...

May won't ask for a long Brexit delay

Prime Minister Theresa May won't ask the European Union for a 'long' delay to the Brexit deadline, her office said, after pro-Brexit ministers objected...

Demand for safe assets grows

Markets remain under moderate pressure, despite the Fed comments. Powell's semi-annual speech in Congress reinforced expectations that the US Central Bank...

  


Share it on:   or