SUMMARY

  • Given the high volatility of the market, the price of gold recorded a rise of +1.66% yesterday. Gold is currently trading at $2,372 per troy ounce in the spot market.
  • WTI and Brent futures volumes in the stock market are rising as traders focus on direct assets rather than oil ETFs.
  • Following the ECB’s decision to keep interest rates stable, the EURUSD corrected by -0.15%.

 

Main events:

  • UK GDP
  • UK industrial production
  • UK trade balance
  • CPI in Germany
  • CPI in France
  • CPI in Spain
  • ECB economic projections
  • CPI in India

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2334,21
  • Support 2: 2332,79
  • Resistance 1: 2337,2
  • Resistance 2: 2338,77

Fundamental Analysis

  • Given the high volatility of the market, the price of gold recorded a rise of +1.66% yesterday. Gold is currently trading at $2,372 per troy ounce in the spot market.
  • The market continues to ignore the consequences of inflation in the United States. Surprisingly, it has increased, leading the Federal Reserve to doubt the possibility of reducing interest rates. For its part, the ECB kept its rates stable at 4.50%.
  • In the United States, unemployment claims rose to 211,000 versus the expected 216,000.
  • Traders are paying attention to the CPI in Europe. This data is important because it is the raw material for the ECB to begin cutting interest rates.
  • Gold is above the 40-day moving average. Continuation of the bullish trend. The price could rise to $2,390 per troy ounce.

WTI

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$852
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 85,43
  • Support 2: 85,39
  • Resistance 1: 85,55
  • Resistance 2: 85,63

Fundamental Analysis

  • WTI and Brent futures volumes in the stock market are rising as traders focus on direct assets rather than oil ETFs.
  • The Biden administration has abandoned its interest in increasing strategic oil reserves, due to the increase in the price of the product. The price of crude oil has a high probability of increasing, due to rising tensions in the Middle East.
  • Oil and gas transactions in Canada are increasing. Companies in the sector have significant liquidity due to the significant increase in raw material prices.
  • OPEC+ expects a significant rebound in crude oil demand over the summer as high temperatures begin to emerge.
  • WTI is below the 40-day moving average. The price is halfway to reaching $90 a barrel.

EURUSD

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$852
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 1,0724
  • Support 2: 1,0721
  • Resistance 1: 1,0728
  • Resistance 2: 1,0731

Fundamental Analysis

  • Following the ECB’s decision to keep interest rates stable, the EURUSD corrected by -0.15%. Analysts continue to believe that the ECB is slow to start cutting rates, as inflation is very close to 2%.
  • To confirm the above, operators are paying attention to the results of the CPI in Germany, France, Spain and the economic projections of the ECB.
  • In the US we will have the inflation expectations from the University of Michigan, which are important to review the behavior of the indicator for next month.
  • Net speculative positions in euros are expected in 16.8 thousand contracts. Currently, long positions are gaining ground. Traders bought the coin after yesterday’s major correction.
  • EURUSD is at the 1.0722 support zone, just below the 40-day moving average.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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