Gold prices fell at the end of last week as the dollar rose despite uncertainty over the U.S. economic policy and EU's political outlook. The Greenback rose on Yellen’s remarks on interest rates as she said that the Fed could raise interest rates soon. The U.S. dollar index traded below 101 pips in anticipation of Fed minutes, which will be released this Wednesday. The Greenback could trade in a limited range due to the Presidents' Day.
Gold is still looking forward to recording further gains as investors focus on getting more details about the promises of the U.S. President Donald Trump’s tax plan. Technically, the yellow metal could face support due to political uncertainty across the EU. The precious metal is trading at $1,235 and could re-test $1,244 during the week in anticipation of the upcoming Fed minutes.
The Greenback fell vs. Japanese yen despite Yellen’s remarks on interest rates, as the U.S. political uncertainty has pushed traders to the safe-haven currency.
GBP declined vs. USD as the UK retail sales unexpectedly dropped by 0.3% again, in January compared to the previous month, well below the 0.9% rise expected. Cable traded under pressure due to such data and settled at $1.24. Technically, it could re-test the psychological barrier of $1.25, due to the U.S. Presidents Day.
Oil prices pared its gains at the end of last week, after a significant increase in U.S. shale output, which could have an adverse effect on oil OPEC supply-cut deal.
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The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.