Fundamental:
10/17/2022 | 06:28
The price of gold rose on Monday after falling more than 1% in the previous session as a pause in the dollar's rally eased pressure on green-priced bullion, although looming U.S. rate hikes have limited additional earnings.
The Dollar Index remained stable, while benchmark 10-year US Treasury yields eased away from the 14-year high hit last week.
"Gold has rallied slightly from Friday's low, but buyers are lacking conviction, which looks more like a technical repositioning," said City Index analyst Matt Simpson.
“The US Dollar and yields will be a key driver for gold, and if they continue to rise, then a move and test of $1600 is likely only a matter of time.”
Consumer sentiment improved further in October, but inflation expectations deteriorated a bit, keeping expectations of another 75 basis point rate hike intact.
Gold is very sensitive to rising US rates, which increases the opportunity cost of holding non-performing gold.
Holdings of SPDR Gold Trust, the largest gold-backed exchange-traded fund, fell 3.18 tonnes on Friday, their biggest one-day outflow since September 26.
US retail sales held steady in September, against all expectations.
Gold is very sensitive to rising US rates, which increases the opportunity cost of holding non-performing gold.
Holdings of SPDR Gold Trust, the largest gold-backed exchange-traded fund, fell 3.18 tonnes on Friday, their biggest one-day outflow since September 26.
Australian stocks fall on recession fears and lower commodity prices.
10/17/2022 | 08:40
Australian stocks fell during Monday's session amid recession fears and falling oil and metal prices.
Gold prices gave up their gains as the US dollar remained resilient.
Technical:
Temporisation area between 0.32 and 0.23 Fib and large sales volume over 1665.0$.
Decreasing ADX and under 25.0 (16.30) + Bearish divergence on Momentum + Stochastic over 80.0 (overbought asset) + MMA50 tending to cross MMA 20.
There's a positive correlation between BOND PRICE and GOLD PRICE (safe-haven assets) but a negative correlation between BOND YIELD and GOLD PRICE because of opportunity costs. US10Y is reaching the 3.957% point which could lead to a rebound on the resistance resulting on the increase of the price targeting (at least) the 4.000 %.
Money management :
1 position BUY on US10Y
1 position SHORT on GOLD
10/17/2022 | 06:28
The price of gold rose on Monday after falling more than 1% in the previous session as a pause in the dollar's rally eased pressure on green-priced bullion, although looming U.S. rate hikes have limited additional earnings.
The Dollar Index remained stable, while benchmark 10-year US Treasury yields eased away from the 14-year high hit last week.
"Gold has rallied slightly from Friday's low, but buyers are lacking conviction, which looks more like a technical repositioning," said City Index analyst Matt Simpson.
“The US Dollar and yields will be a key driver for gold, and if they continue to rise, then a move and test of $1600 is likely only a matter of time.”
Consumer sentiment improved further in October, but inflation expectations deteriorated a bit, keeping expectations of another 75 basis point rate hike intact.
Gold is very sensitive to rising US rates, which increases the opportunity cost of holding non-performing gold.
Holdings of SPDR Gold Trust, the largest gold-backed exchange-traded fund, fell 3.18 tonnes on Friday, their biggest one-day outflow since September 26.
US retail sales held steady in September, against all expectations.
Gold is very sensitive to rising US rates, which increases the opportunity cost of holding non-performing gold.
Holdings of SPDR Gold Trust, the largest gold-backed exchange-traded fund, fell 3.18 tonnes on Friday, their biggest one-day outflow since September 26.
Australian stocks fall on recession fears and lower commodity prices.
10/17/2022 | 08:40
Australian stocks fell during Monday's session amid recession fears and falling oil and metal prices.
Gold prices gave up their gains as the US dollar remained resilient.
Technical:
Temporisation area between 0.32 and 0.23 Fib and large sales volume over 1665.0$.
Decreasing ADX and under 25.0 (16.30) + Bearish divergence on Momentum + Stochastic over 80.0 (overbought asset) + MMA50 tending to cross MMA 20.
There's a positive correlation between BOND PRICE and GOLD PRICE (safe-haven assets) but a negative correlation between BOND YIELD and GOLD PRICE because of opportunity costs. US10Y is reaching the 3.957% point which could lead to a rebound on the resistance resulting on the increase of the price targeting (at least) the 4.000 %.
Money management :
1 position BUY on US10Y
1 position SHORT on GOLD
Trade closed: target reached