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...
Gold market overview
2019-11-11 • Updated
Gold prices hit their March high at $1247 in the European session posting gains for six consecutive days. A further upsurge is not ruled out. To determine whether there will be a retracement, we suggest you looking at gold fundamentals and XAU/USD technical chart.
Fundamentals:
The political uncertainties over European election and Brexit offer substantial support for the gold prices. The recent spike in the gold prices should be attributed to another factor. Lots of the gold’s gains came after the Fed raised its interest rate, but maintained a more subdued pace for future rate hikes. An expectation for a slower pace of rate increases will be the factor of the gold appreciation.
Another tailwind may well come from India, the world’s largest consumer of the yellow metal. Last year, Indian gold demand plummeted from 857,2 tonnes to 675.5 tonnes mainly because of the governmental regulation necessitating the removal of high denomination 500 and 1,000 rupee notes in November. This year the Indian demand is recovering: gold imports jumped to 50 tonnes in February which 82% more than India demanded in the same month last year.
Another gold consumer People’s Republic of China might increase its demand for gold. The main factor it the value of yuan. Chinese yuan depreciate with unpredictable pace, so the investors might be willing to switch to gold as a hedge.
Technical analysis:
The precious metal rallied to $1,247 overnight. The key resistance on its way is lying at $1,250 near the 78.6 Fibo level traced from this year high. A breakout of this level will open the way towards next hurdles at 1,255.60, 1,260. An immediate support lies at $1,237.50 (61.8% Fibo level) and at $1221.40 (near 38.2% Fibo level coinciding with 50-day MA).
Similar
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...
Latest news
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...