Gold is Getting Strong

Happy Friday, dear traders! Friday is always a little holiday, so we hope you’re ready to trade as much as possible before the weekend! Let’s see what news can be interesting for today:

Today’s events:

17:00 GMT+2 - Prelim UoM Consumer Sentiment

Gold is doing great

Gold prices topped $1,750 for the first time since August 30. It happened due to a CPI data release, which showed the US inflation rate was less than expected last month, 7.7% from 7.9% y/y. Gold, which reversely correlates with the US dollar, immediately after release gained almost 3%.

RSI overbought conditions are joining the upper line of the weekly bullish channel. Besides, the 50-HMA level acts as direct support. It’s worth noting that sustained trading above $1,765 will not hesitate to challenge the five-month horizontal resistance area around $1,805. Gold remains on the bulls' radar, but the upside seems limited.

Other news worth mentioning:

The S&P 500 and Nasdaq Composite posted their strongest single-day gains since 2020, +5.5% and +7.4%, respectively.
An indicator of Hong Kong-listed tech stocks rose more than 10% as the lockdown change followed a call by leaders in Beijing for more precise and targeted measures to combat the virus.
Elon Musk's told Twitter's employees he couldn't rule out the company filing for bankruptcy next year. Redundancies in the company also continue.
The recent mass layoff at Meta marks a turning point for the company, whose share price has fallen 70% over the past year. Other major challenges for Meta include the rise of TikTok, Apple's privacy changes that hurt ad revenue, and a shortage of Gen Z users.
com Inc. — the world's first public company to lose a trillion dollars in market value due to rising inflation, monetary tightening, and disappointing earnings reports, triggered a historic sell-off in stocks this year.

Have a great day!

FBS Analyst Team

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