SUMMARY

  • Bond yields remain at record lows, with investors eager to wait for interest rates to fall before prices rebound.
  • WTI has managed to reach the $80 a barrel barrier again. The price is currently up +0.10% at $80.05 per barrel.
  • Despite analysts’ postponement of the Fed’s rate cut, Wall Street stock indexes continue to set records. The S&P500 is currently down -0.06% at 5134.

GOLD

Specifications

  • Leverage: 50
  • Units: 100
  • Margin requirement: USD$4161
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2081,79
  • Support 2: 2080,94
  • Resistance 1: 2083,98
  • Resistance 2: 2085,32

Fundamental Analysis

  • Bond yields remain at record lows, with investors eager to wait for interest rates to fall before prices rebound. As a result, bond firms, such as Pimco, are preparing to buy large volumes.
  • The United States has begun sending humanitarian aid to Palestine. Cease-fire talks continue. However, tensions are rising.
  • Swiss CPI is expected to come in at 0.5% month-on-month.
  • Traders await statements from FOMC delegates.
  • In Japan, year-on-year CPI is expected at 2.5%, a significant rebound from the previous report of 1.6%.
  • The Japanese service sector PMI is expected to come in at 52.5, in line with the economic expansion zone.

WTI

Specifications

  • Leverage: 50
  • Units: 1.000
  • Margin requirement: USD$1,519
  • Example: USD$1 change in WTI price = USD1000 potential PL.
  • Support 1: 79,96
  • Support 2: 79,80
  • Resistance 1: 80,26
  • Resistance 2: 80,40

Fundamental Analysis

  • WTI has managed to reach the $80 a barrel barrier once again. The price is currently up +0.10% and stands at 80.05 dollars a barrel.
  • OPEC+ has agreed on new production cuts until mid-year. The total reduction is about 2.2 million barrels per day. This news triggered a rally in crude oil prices.
  • Russian oil and gas company Rosneft wants to sell its assets in Germany.
  • Saudi Arabia tries to maintain the price of its crude oil sales to Asian customers.
  • The Texas fire spreads, which could lead to problems in oil production.
  • WTI price is above the 40-day moving average, suggesting a continuation above the current USD 80.05 area. The weekly target for the bulls is USD 85.

S&P500

Specifications

  • Leverage: 50
  • Units: 1
  • Margin requirement: USD$102
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 5132,40
  • Support 2: 5131,60
  • Resistance 1: 5134,20
  • Resistance 2: 5135,20

Fundamental Analysis

  • Despite analysts’ postponement of the Fed’s rate cut, Wall Street stock indices continue to set records. The S&P500 is currently down -0.06% at 5134 points.
  • Traders are eagerly awaiting statements from the FOMC and the ECB, as well as employment and CPI figures from Europe and the US. The most important data is the NFP, which is used to assess economic developments in the United States.
  • The rally in equity markets could continue as the market anticipates rate cuts by central banks. On the fixed income side, buying volume could increase as bond prices are currently cheap compared to what they could be once rates come down.
  • The S&P500 continues to look for new resistance. At the moment, it is above the 40-day moving average, which is a bullish sign.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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