Gold price tumbled this morning to around -1% drop on the day after the dollar and shows strength amid the delta variant COVID strain that originated in India has spread to parts of Europe. Pandemic concerns always spark interest in the dollar over the metal as most investors like support from the US government and the Fed.
Gold is still under constant pressure as the Fed continues to talk-up the dollar with less concern for inflation. With big money slowly decreasing their long position sizes and upping their shorts according to the COT report last week, the pair doesn't look very bullish right now. The US economy is very busy once again and GDP is now showing any signs of slowing, which gold needs to rise.
Gold on the 4H timeframe has broken out below its wedge and headed back down to lows in the $1,750s. New resistance is now at $1,772, and price's recent strong momentum to the downside will probably keep gold at bay. A break under the $1,750 mark would spell bearish news for the precious metal.
Silver may have bottomed-out around $25.50s after leaving a couple long wicks on the 4H to show rejection from these lows. 14-Day RSI is reading very close to oversold (30) on this chart suggesting that silver could see a bounce, but it may enter a consolidation zone around this support zone if price doesn't break under.
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 […]