Gold price (XAU/USD) has attempted a rebound after dropping below the critical support of $1,750.00 in the early European session. The precious metal has reclaimed the $1,750.00 hurdle again as the US Dollar Index (DXY) is struggling to extend its gains after sensing strength in the Tokyo session. The USD Index is failing to sustain above a two-day high at 106.40 despite a cautious market mood.
The situation of unrest in China as households have been frustrated being at home following Covid-19 protocols for a tad longer period. This has spooked the entire global market. S&P500 futures are extending their losses continuously, portraying a risk-aversion theme. Meanwhile, the returns on US Treasury bonds have weakened further as investors have turned anxious ahead of the speech from Federal Reserve (Fed) chair Jerome Powell, scheduled on Wednesday. The 10-year US Treasury yields have dropped to below 3.63%.
Intensifying protests by individuals against anti-Covid lockdown measures by the Chinese authorities to curtail infections have dampened the risk-appetite theme. This has led to a sheer decline in the risk-sensitive currencies but has supported the US Dollar. It is worth noting that the decline in gold price is fairly lower than fall risk-perceived assets. The catalysts that are impacting gold price majorly are a recovery in the US Dollar, and anxiety ahead of the speech from Federal Reserve chair Jerome Powell.
Chatters over a slowdown in the current rate hike pace by the Federal Reserve have gone rooftop. Whatever the decision the Federal Reserve will take in the December monetary policy on interest rates, the risk-sensitive assets have enjoyed a ball. Last week’s Federal Open Market Committee (FOMC) minutes cleared that Federal Reserve policymakers are favoring a deceleration in the rate hike pace to reduce financial borrowings and to observe the efforts yet made to slow down inflation.
The speech from Federal Reserve chair Jerome Powell will provide cues to the market participants about whether the Federal Reserve will continue its 75 basis points (bps) rate hike spell or will shift to a lower rate hike extent. A softer tone used for interest rate guidance would strengthen Gold price ahead.
This week, the United States Nonfarm Payrolls (NFP) data will be of significant importance. The extent of the change in employment level in the United States in November will have a critical impact on the interest rate decision by the Federal Reserve. But before that, investors will keep an eye on the United States Automatic Data Processing (ADP) Employment data. According to the estimates, the US economy has added 200k fresh jobs in the labor market, lower than the prior release of 239k.
The Federal Reserve is continuously tightening its monetary policy, which has resulted in weaker economic projections. Firms have postponed their expansion plans due to higher interest obligations. This has also forced them to postpone their demand for manpower.
Gold price has displayed a steep recovery after testing the 38.2% Fibonacci retracement (plotted from November 3 low at $1,616.69 to November 15 high at $1,758.88) at $1,722.00 and has also crossed the 23.65 Fibo retracement at $1,746.50 on an hourly scale.
The precious metal is hovering around the 50-period Exponential Moving Average (EMA) at $1,753.17, which indicates uncertainty over the short-term trend.
Meanwhile, the Relative Strength Index (RSI) (14) has rebounded after sensing support of around 40.00, which signals that dips are explosively capitalized by the market participants.
© 2000-2024. Bản quyền Teletrade.
Trang web này được quản lý bởi Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
Thông tin trên trang web không phải là cơ sở để đưa ra quyết định đầu tư và chỉ được cung cấp cho mục đích làm quen.
Giao dịch trên thị trường tài chính (đặc biệt là giao dịch sử dụng các công cụ biên) mở ra những cơ hội lớn và tạo điều kiện cho các nhà đầu tư sẵn sàng mạo hiểm để thu lợi nhuận, tuy nhiên nó mang trong mình nguy cơ rủi ro khá cao. Chính vì vậy trước khi tiến hành giao dịch cần phải xem xét mọi mặt vấn đề chấp nhận tiến hành giao dịch cụ thể xét theo quan điểm của nguồn lực tài chính sẵn có và mức độ am hiểu thị trường tài chính.
Sử dụng thông tin: sử dụng toàn bộ hay riêng biệt các dữ liệu trên trang web của công ty TeleTrade như một nguồn cung cấp thông tin nhất định. Việc sử dụng tư liệu từ trang web cần kèm theo liên kết đến trang teletrade.vn. Việc tự động thu thập số liệu cũng như thông tin từ trang web TeleTrade đều không được phép.
Xin vui lòng liên hệ với pr@teletrade.global nếu có câu hỏi.