The previous few days have actually not been variety to Gold and this continues to be mirrored within the bearish worth motion.
Conflicting alerts over the route of the US-China commerce talks have despatched traders dashing in direction of the Greenback – in the end weighing closely on Gold. Though bulls are clearly shedding the battle as costs sink in direction of $1274, the warfare nonetheless rages on.
It have to be saved in thoughts that the sentiment pendulum may simply swing in favour of bulls this week, if commerce tensions intensify and fears over slowing international development speed up the flight to security. With Gold nonetheless supported by core themes within the type of a cautious Federal Reserve and hypothesis over a attainable US fee lower in 2019, the dear steel stays shielded by excessive draw back shocks.
Wanting on the technical image, sustained weak spot beneath $1280 is seen opening a path in direction of $1268.50 within the brief to medium time period. Alternatively, a breakout above $1280 could supply bulls one other likelihood to problem the $1300 psychological stage.
Forex highlight – USDJPY
Escalating US-China commerce tensions haven’t solely strengthened the Japanese Yen but in addition the Greenback which is seen as a safe-haven asset. This improvement has reworked the USDJPY right into a fierce battleground for bulls and bears with costs buying and selling marginally above 110.00 as of writing. Ought to the Greenback win the present tug of warfare towards the Yen, the USDJPY is seen pushing larger in direction of 110.70 within the close to time period. Alternatively, a failure for bulls to take care of management above 110.00 is prone to open a path in direction of 109.00.
Commodity highlight – WTI Oil
WTI Oil has pushed larger on the every day charts because of geopolitical tensions within the Center East. Whereas bulls appear to be within the driving seat, there appears to be a robust resistance at $64.50 and $66.70, respectively. Ought to costs fail to interrupt above these two key factors, WTI is seen sinking again in direction of $60.00 within the medium time period. Alternatively, a situation the place $66.00 is conquered is prone to open the gates in direction of $70.00 – a stage not seen since October 2018.