SUMMARY

  • Geopolitical tensions are rising around the world. As a result, gold prices continue to rise. Yesterday, gold closed up +0.76%.
  • Analysts are closely following the Bank of Japan’s monetary policy normalization. The first rate hike is expected in April 2024.
  • The 30-year Treasury bond yield came in at 4.331%, compared to the forecast of 4.360%. In other words, it declined, indicating lower market interest in buying fixed income securities.
  • Key data:
    • Spain inflation report.
    • U.S. retail sales report
    • U.S. Unemployment Claims Report

GOLD

Specifications

  • Leverage: 50
  • Units: 100
  • Margin requirement: USD$4161
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2173,11
  • Support 2: 2171,35
  • Resistance 1: 2176,84
  • Resistance 2: 2178,81

Fundamental Analysis

  • Geopolitical tensions are rising around the world. As a result, gold prices continue to rise. Yesterday, gold closed up +0.76%. At the moment, the price remains sideways above USD 2,172 per ounce.
  • Biden and Trump will face each other again in the US presidential election. This is the second time in 70 years that two candidates will face each other in an election.
  • British GDP rises 0.2% m-o-m, in line with market expectations.
  • In Spain, inflation is forecast at 2.8%. In the U.S., retail sales are expected to rise 0.8% m-o-m.
  • Today we will hear from De Guindos, in his capacity as Vice President of the ECB.
  • The gold price is above its 40-day moving average. It is currently trying to break above resistance. The target level is 2,200 USD.

USDJPY

Specifications

  • Leverage: 100
  • Units: 100,000
  • Margin requirement: USD$999
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 147,84
  • Support 2: 147,79
  • Resistance 1: 147,97
  • Resistance 2: 148,03

Fundamental Analysis

  • Analysts are closely monitoring the Bank of Japan’s monetary policy normalization. The first rate hike is expected in April 2024. USDJPY is currently up +0.14% at 147.95.
  • Analysts are assessing whether the BoJ will raise rates gradually, over several meetings, or do it all at once for the whole year. According to Commerzbank, the BoJ is likely to raise rates by 0% to 0.1% at its first meeting.
  • USDJPY is trying to regain the 148 area, with the price above its 40-day moving average. Resistance at 148.03 is the most immediate point to overcome. If it is reached, the next target is 150, which is a clear path.
  • Traders are keeping an eye on US retail sales, as this indicator shows how demand is performing. The Fed is awaiting the results, which will determine whether to keep interest rates unchanged during the first half of 2024.

NASDAQ 100

Specifications

  • Leverage: 50
  • Units: 1
  • Margin requirement: USD$360
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.370,41
  • Support 2: 18.360,58
  • Resistance 1: 18.385,41
  • Resistance 2: 18.390,58

Fundamental Analysis

  • The yield on 30-year Treasury bonds was 4.331%, compared to the 4.360% expected. In other words, it declined, indicating lower market interest in buying fixed income securities.
  • U.S. jobless claims are expected to rise to 218,000, up from 217,000 in the previous report. An increase in claims is expected. The Fed is awaiting the results to assess the performance of the labor market.
  • The Nasdaq 100 closed down -0.81% yesterday. At the moment, the index is up +0.29% and trades at 18,380 points.
  • The US Congress is considering restricting Tik Tok in the country, due to the leak of user account data.
  • According to JP Morgan, the price of gold could reach 2,500 dollars, as investors seek to hedge their portfolios in view of the high volatility of the markets.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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