News

The Pound dives below 203.00 after rejection at the 205.00 area.

Fundamental
Overview

We had a wave of
profit-taking yesterday on gold and other precious metals that wasn’t triggered
by any clear catalyst. Maybe silver making the headlines for breaking into a
new all-time high caused it, but there was no fundamental catalyst.

For now, the market continues
to move by inertia, and given the US government shutdown, there’s not much
stopping this train. The BLS announced that it will release the US CPI report
despite the shutdown, but it will likely be postponed from the original date.

That might be a risk for
the bulls as higher than expected data could trigger a hawkish repricing and
lead to a bigger pullback.

In the bigger picture, gold
should remain in an uptrend as real yields will likely continue to fall amid
the Fed’s dovish reaction function. In the short-term though, a hawkish repricing
in interest rates expectations will likely trigger a correction.

Gold
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that gold had a negative day yesterday due to some profit-taking. This
rally went so much parabolic that it’s basically useless to look at the daily
timeframe at the moment, so we need to zoom in to see some more details.

Gold Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can
see that we have an upward trendline defining the bullish momentum. The buyers
will likely lean on the trendline with a defined risk below it to keep pushing
into new all-time highs. The sellers, on the other hand, will look for a break
lower to extend the pullback into the 3,819 level next.

Gold Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can
see that we have a minor resistance zone around the 4,000 level. That’s where
we can expect the sellers to step in with a defined risk above the resistance
to position for a break below the trendline. The buyers, on the other hand,
will look for a break higher to increase the bullish bets into new highs. The
red lines define the average daily range for today.

Upcoming
Catalysts

Today we conclude the week with the
University of Michigan Consumer Sentiment report.

Watch the video below

This article was written by Giuseppe Dellamotta at investinglive.com.

• Eurostoxx +0.1%
• Germany DAX flat
• France CAC 40 +0.2%
• UK FTSE -0.2%
• Spain IBEX +0.5%
• Italy FTSE MIB +0.5%

While starting the day with a more tentative mood, German stocks have been the standout with the DAX holding near record highs. French and Italian stocks are the laggards this week but the former has bounced back rather well, brushing aside the political woes at the start of the week. On the week now, the CAC 40 is down just 0.3% currently after the over 1% drop on Monday itself. US futures are helping to keep the risk mood steadier today too, with S&P 500 futures seen up 0.1% at the moment.

This article was written by Justin Low at investinglive.com.

Komeito party leader Tetsuo Saito said on Friday, “we cannot agree with the Japan’s ruling Liberal Democratic Party (LDP) on issues involving money, politics.”

The Japanese Yen (JPY) maintains its bid tone heading into the European session on Friday amid some verbal intervention from Japan’s Finance Minister Kato.

The Australian Dollar (AUD) offers its intraday gains against the US Dollar (USD) on Friday. The AUD/USD pair gained ground following the cautious remarks from the Reserve Bank of Australia (RBA) Governor Michele Bullock.

Austria Industrial Production (YoY) dipped from previous 1.8% to 0.8% in July

Austria Industrial Production (YoY) dipped from previous 1.8% to 0.8% in July

Silver price (XAG/USD) jumps to near $49.95 during the early European session on Friday. The white metal attracts some buyers amid the ongoing US government shutdown, uncertainty and the prospect of a US interest rate cut. 

Shares of Taiwan Semiconductor (NYSE:TSM) were on the move Thursday after the world’s leading semiconductor chip foundry posted robust sales growth results in September.