Gold gained early in the week as the dollar struggled with the anticipation of the USD news set to come out Thursday and Friday. Gold has been able to hold itself above the $1800 mark for two days so far as the dollar slips 0.81% from the highs.
Gold's performance will likely depend on interest rates remaining low, higher inflation, and a slowing economy. In the long term, I think inflation will probably help gold's price out, but I also don't think the US will struggle with the economy. Also, the Fed goes back and forth on tapering which means that they have no idea when to loosen their bond buying for now. Gold also had a major break above a falling trend line from January of this year which at least points towards a potential run to the upside in the short term.
Gold on the 1D chart breaks and closes above a long term falling trend line and stays above the $1800 for the second day. Now price has to test its 200 DMA to see if it can push higher or go into consolidation for a little while.
A look at the 4H chart will help us spot support if price falls under $1800. The $1795 mark is a big level of support for the metal should momentum start to fade after the impressive run.
9/17/2021 Stocks are down -0.58% this morning after coming down to test a significant level of support once again. While stocks fall, the dollar rises in the anticipation of sooner-than-expected tapering by the Fed along with a hike in interest rates starting in 2022. Our outlook Other than September being one of the worst months […]
9/16/2021 The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just […]
9/14/2021 This morning's report on CPI m/m and core CPI m/m came in at a lower percentage than expected which resulted in a falling dollar pre-New York session. The USD is now volatile under the uncertainty of potential tapering and rising rates while the equities market seems to be rising because of this. Our outlook […]
9/13/2021 Big money has been moving out of Australia's currency for nearly a month now which has been the biggest drop in long contracts in this amount of time year-to-date. Australia's dollar index (AXY) is up 0.06% at 73.61 on the day after rebounding from the lows around 71.19. Our outlook Australia's economy has surprised […]