Gold Declines after Failed Coup

Gold Declines after Failed Coup

Continuing repercussions of Friday's failed military coup attempt, had a significant impact on the rise in gold last week, but the yellow metal declined rapidly on revived risk appetite after the failed Turkey coup. 

The US dollar index fell by 13 pips and settled at 96.55.

On Monday, Gold settled down by 1%, as investors left the safe haven.
Gold is trading below the resistance level of $1,330 and continuous trading in such levels would lead the yellow metal to decline further to $1,315 and $1,300. 

Japanese yen fell to its lowest level in three weeks vs. US dollar on Monday, as investors left the safe haven that followed Friday's failed military coup attempt.

USD surged vs. JPY and traded above ¥106, the highest level since the EU referendum. The greenback could touch ¥107 during the course of the week.

Sterling and Euro pared their losses, thanks to lack of economic data. Traders are awaiting important data from the UK about annual inflation rates and Euro Zone Business confidence.

From a technical point of view, GBP could re-test $1.33 once again, while euro could re-test $1.11 during the course of the day.
Oil prices fell by 2% on oversupply concerns. WTI settled down at $45 and could decline further to $44.

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.

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