Today’s Hot Asset: Gold
After gaining some upwards ground, gold retracted over 60% of its gain. This towed the price from $1,131/ounce to $1,178/ounce. Following this, the metal fell to $1,146/ounce but has been slowly recovering since. Physical demand is picking up and may be supporting the price. Focus should be put on the U.S. stock market as it is reaching new heights (S&P500 reversed above 2,040).
The movement is sideways. Support is found at 1,130 and resistance at 1,161.
Although the USD experienced bearish sentiment, the EUR/USD began the week by rising up to 1.2500. The pair fell back down to 1.2410. After assessing labour data from the U.S, the overall trader conclusion was that the data remind strong. The unemployment rate was the lowest value since 2008 and the employment change remained high. Sideways movement is expected to continue today as the U.S. public holiday - Veteran’s day is being held. No economic data release will be available today, although the U.S. markets will be open.
The movement is sideways. Support is found at 1.2360 and resistance is at 1.2495.
The GBP/USD was led by the U.S Dollar on Monday. As the market calculated Friday’s labour data, the pair first increased to 1.5915 in later hours it dropped back to 1.5840. The Greenback is now believed by many analysts to be overvalued and a price correction is expected. Over the last two weeks, the Dollar rose over 3, a fact that fuels speculation on the matter. No major economic data is set for release today and low volatility is expected. Technical trading is recommended with short term expirations.
The trend is sideways. Support is found at 1.5790 and resistance at 1.5920.
Crude Oil WTI
WTI Crude Oil fell once more and is pointing towards its support at 75.00. U.S.
High supply and demand should keep estimations for increase on crude stockpiles. The price is expected to continue its downward march. The current analysis agrees that the Organization of Petroleum Exporting Countries will not cut output and therefore, the price should not expressively increase.
Tomorrow, the American Petroleum Industry report should gain attention from traders. U.S. Crude Oil Inventories data is set for release on Thursday in will be on the market’s mind as well.
The trend is sideways. Support is found at 75.00 and resistance at 80.00
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