Gold price has slumped to the lowest level since mid-July amid the optimism on rollout of different kinds of COVID-19 vaccines in the near future, and the surge on stock market and industrial materials.
The 1850.00 is a critical level which has withstood the challenge twice within a month, but the price finally broke the level and started to plummet on last Tuesday, straight falling to next significant support level at 1770.00 on the rest of week.
All in all, the hope on potential rapid economic recovery weighed on the gold price, and the emotion might continue in coming few days or even few weeks as more trial results on vaccines from other drug developers would release.
NZD continued to perform well last week and extended the uptrend begun in early November, refreshing a new high since June 2018.
The Finance PM Robertson said that the government had to review policies related to the housing market on last Tuesday. He also encouraged the central bank to cooperate for stabilizing the property prices. Therefore, the market reinforced the expectation that there would be no further rate cut from RBNZ and it then pushed the exchange rate of NZD higher.
As a commodity currency, New Zealand dollar will also be hugely benefited from vaccine progress and positive outlook of medium-term world economics. The investors therefore should pay attention to the updates on vaccine trial results and vaccination outcome.
Federal Reserve chair Powell said he was worried about the ongoing pandemics would resist the recovery of economic activities, and he also called on Congress and the president for more economic stimulus. However, it is nearly impossible to introduce a stimulus package before Biden move into the White House.
Although the COVID-19 vaccine shot will start soon, it may take several months to a year for reaching the entire population. Therefore, it is crucial for the US to stabilize its infection rate and avoid another round of downturn in coming few months.
We have to eye on some important economic statistics, such as nonfarm payrolls which reflects the employment status. If the readings can keep positive in the near future, employment and economic activities would return to pre-pandemic level faster in post-vaccine period.
The crude oil kept outstanding performance since November and it is now trading slightly above 44.90.
Last Wednesday, the price broke the strong resistance at 43.70 which has been tested for many times in June. Although the two-line MA shows a death cross today, the uptrend is not likely to reverse soon. There is more likely to have a pullback to around 43.70 for gaining more bullish momentums.
If the OPEC alliance can reach a consensus and agree to delay its output hike in this week’s meeting, the oil price would definitely be advantaged and begin to rally again.
Support: 92.15, 91.75
Resistance: 93.20, 94.20, 94.75
S&P 500 was trading around the historic high but still failed to take a breakout last week. The price currently keeps testing its high point.
Both two-line MA and RSI show bullish signal and support for continuation of the uptrend, but it is hard to anticipate the time for breakout. If the optimistic sentiment enhances due to further positive news on vaccines or economics, breakout would occur soon. If the market digests the good news of last two weeks and calms down, the index might keep fluctuating around 3515 to 3645 for longer time.
Support: 3585.00, 3515.00
Australian dollar experienced a good week just like other two commodity currencies, CAD and NZD and it surged to near the highest point set in previous three months.
Even though both two-line MA and RSI also show a continuation of the uptrend on the pair, the breakout cannot be confirmed by now. It is highly possible to hover near the resistance at 0.7415 for a whole week if the market positive sentiment getting weakening.
Support: 0.7245, 0.7160
Resistance: 0.7415, 0.7755
The views or opinions as expressed in the above article represent the personal views or opinions of the author and do not represent those of Gemini Capital LLC (“GC”). GC has no obligation to independently check or verify the author of the article and the information provided in the article. Accordingly, GC does not take responsibility for such article.
This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. GC is not authorized to provide investment advice. No opinion given in the material constitutes a recommendation by GC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Trading with GC can result in losses that exceed your deposits. Consumers should ensure they understand the risk and seek independent financial advice if necessary.
Gemini Capital LLC is a company duly incorporated in Saint Vincent & The Grenadines and registered by the Financial Services Authority (‘FSA’) under Number 228 LLC 2019. Our registered address is located at Hinds Building, Kingstown, Saint Vincent and the Grenadines.
All investments entail risks and may result in both profits and losses. In particular, trading leveraged derivative products such as Foreign Exchange (Forex) and Contracts for Difference (CFDs) carries a high level of risk to your capital. All these derivative products, many of which are leveraged, may not be appropriate for all investors. The effect of leverage is that both gains and losses are magnified. The prices of leveraged derivative products may change to your disadvantage very quickly, it is possible for you to lose more than your invested capital and you may be required to make further payments. It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. Before deciding to invest in any financial product, you should carefully consider your investment objectives, trading knowledge and experience and affordability. You should seek independent professional financial advice if you do not understand the risks involved. You should only trade in Forex and CFDs if you have sufficient knowledge and experience of the risks involved in trading such products and if you are dealing with money that you can afford to lose. GC assumes no liability for any loss sustained from trading in accordance with a recommendation. This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.
GC Markets is the trading name of Gemini Capital LLC. Gemini Capital LLC (“GC”) is a company duly incorporated in Saint Vincent & The Grenadines and registered by the Financial Services Authority (‘FSA’) under Number 228 LLC 2019. GC is also registered as a Money Services Business (“MSB”) with the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”) under Number M20513484 and registered with National Futures Association (“NFA”) of United States of America under Number 0533039. Our registered address is located at Hinds Building, Kingstown, Saint Vincent and the Grenadines.
Kindly click the button below to register via Facebook Messenger