Positive US Data Weighs on Gold
The Precious Metal has started the day on a bad foot and seemed to just continue tumbling downward on the back of hawkish comments from FED officials and strong employment data from the US.
The Gold metal ended the day yesterday on a high note recording 1274 as a high, however, that euphoria was short-lived especially after the Asian session where Fed’s Williams was in Seoul delivering a speech talking about the strong US economy. He noted that should the economy stay on the current path which it has set for itself, there is no quarrel with him should the Fed agree on Four Rate Hikes this year instead of the proposed three. That deflated the metal from the highs and seemed to be weighed down with that prospect.
EURUSD maintains better levels but continues to struggle, in what is a clear sign that we have risen a little too fast in the time frame achieved, but we see little prospect of a major pullback here as the ECB meeting next week will be fraught with taper-talk risk. Tight ranges set to play out here as a result.
Oil prices have stabilized after another strong report from APIs showing a near 8.5mln barrel draw down in Crude, but higher US production levels have tempered some of this. Gold is still at better levels as safe haven flow dictates as well as recent USD weakness. Silver is well propped-up above UD17.00.
GBPUSD – The downward movement of the currency pair has been driven further due to the elections jitters over in the UK with Conservatives and Labor battling it out for the majority. The 21-DMA has switched lows when the pair dropped below, now offering resistance at 1.2922.
USDJPY – The Yen still seems to have the strength to it, even though the Dollar seems to be gaining momentum over other currencies. The safe haven bet is what is being traded at the moment with political jitters in the UK and US weighing on the Yen. It is closing in on the 200-DMA support at 110.27.
USDCAD – The Canadian dollar seems to be on the back fence as of late with the oil driving the Canadian dollar lower against the US dollar. It is currently closing in on the resistance at the 25-DMA at 1.3530.
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