ONLINE FOREX BROKER
2020-07-02 • Updated
Gold dropped significantly yesterday, while analysts predicted $1 800. Were they wrong?
XAU/USD set a strong upward trend. It reached the 8-year high. Most economists predicted that the gold price would continue rising up to $1 800. Indeed, gold tends to increase amid the market uncertainty. And there are a lot of reasons to be hesitant now:
Investors usually pour money to safe-haven assets such as gold, USD and JPY in such dark times. However, the US dollar started to lose its safe-haven title. Its global dominance has waned as the USA is suffering from the virus outbreak. That’s why gold turned to the number one “emergency” asset. Nevertheless, successful Covid-19 vaccine tests from Pfizer and BioNtech improved the market sentiment. Therefore, yesterday gold bears became stronger and the price dropped. Traders started doubting whether it’s time to sell gold. Most analysts reassured that it’s not the time yet. According to Peter Cardillo, chief market economist at Spartan Capital Securities: “gold is continuing to rise reaching new historic levels setting the stage for $2 000 gold sometime this year”.
Traders widely await the US NFP report today. It will define the whole market sentiment and should have a huge impact on gold. If the data comes worse than expected, gold will surge, otherwise-drop. The report will be released at 15:30 MT time. Don’t miss out!
The long-term trend is bullish. It’s likely that it will stick to this trend. However, short-term contractions may take place on its way up. If NFP comes worse than the forecast, the price can break through the resistance at $1 780, and then it may surge further. In opposite, if NFP comes better than expected, gold may fall to the support at $1 760 and then $1 727. Follow the report and catch the market move!
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
What is going on with this energy asset these days, and should we prepare for further falls?
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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