SUMMARY

  • During yesterday’s session, the price of gold approached the USD 2,400 zone, climbing as high as USD 2,425 per Troy ounce. Currently, the price of gold is correcting by -0.05% and trading at USD 2,381.
  • The Nasdaq 100 closed yesterday with a slight rise of +0.03%. At present, the index is up +0.26% and trading at 17,928 points.
  • Sterling against the dollar continues to correct, due to rising unemployment in the UK.

 

KEY EVENTS:

  • Eurozone CPI
  • UK CPI
  • Eurogroup meeting

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2381.18
  • Support 2: 2379.89
  • Resistance 1: 2384.98
  • Resistance 2: 2387.49

Fundamental Analysis

  • During yesterday’s session, the price of gold approached the USD 2,400 zone, climbing as high as USD 2,425 per Troy ounce. Currently, the price of gold is correcting by -0.05% and is trading at USD 2,381.
  • Canada’s Consumer Price Index (CPI) came in at 2.9%, up 0.6% on the previous month’s report. This follows rising inflation in the United States, which has had an impact on Canada, one of its main trading partners.
  • New Zealand’s CPI stood at 4%, up 7 basis points on the previous report.
  • Traders are keeping a close eye on UK CPI, which is expected to come in at 3.1% year-on-year.
  • In the Eurozone, CPI is forecast at 2.4%, very close to the 2% inflation target.
  • Gold continues its upward trend, as traders seek to hedge their portfolios against potential equity declines.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$180
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 17919.34
  • Support 2: 17908.67
  • Resistance 1: 17937.59
  • Resistance 2: 17945.17

Fundamental Analysis

  • The Nasdaq 100 closed yesterday with a slight gain of +0.03%. At present, the index is up +0.26% and trading at 17,928 points. Traders remain on the lookout for a major market correction. Analysts continue to monitor the financial results season.
  • During yesterday’s session, Netflix rose +1.71%, indicating that traders are buying the stock as they expect good financial results from the company. Tesla, on the other hand, continues to worry investors. Yesterday, Tesla shares fell by 2.71%. Apple fell 1.92%, as investors worried about declining iPhone sales.
  • Rising geopolitical tensions are also having an impact on stock market performance. For the time being, traders remain interested in gold as a traditional safe-haven asset.

GBPUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$623
  • Example: 100 pips change in GBPUSD price = USD1,000 potential PL.
  • Support 1: 1,2428
  • Support 2: 1,2425
  • Resistance 1: 1,2436
  • Resistance 2: 1,2441

Fundamental Analysis

  • Sterling against the dollar continues to correct, due to rising unemployment in the UK. The unemployment rate has risen to 4.2%. Yesterday, GBPUSD corrected by -0.16%. Currently, it is up +0.06% and trading at 1.2432.
  • US Treasury yields continue to rise due to investor interest in fixed-income securities. Analysts expect a correction in equities.
  • The market eagerly awaits Jerome Powell’s statement as Fed Chairman. Inflation in the US is rising, putting pressure on and delaying interest rate cuts.
  • GBPUSD is below its 40-day moving average. The price is close to the lower Bollinger Band, which could attract the attention of market buyers. For the time being, the price remains close to the support zone.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

Risk Disclaimer

Any information/article/material/content provided in this document is intended to be used for educational purposes only and does not constitute investment advice or consultation on how the client should trade.

While the authors have ensured that the content of such information is accurate, they are not responsible for any omissions/errors/miscalculations and cannot guarantee the accuracy of any material or any information contained therein.

Therefore, any reliance you place on such material is strictly at your own risk. Please note that the responsibility for using or relying on such material rests with the customer and the company accepts no liability for any loss or damage including, without limitation, any loss of profit which may arise directly or indirectly from the use of or reliance on such information.