On Tuesday, Gold fell as much as 2% to its lowest level since the UK’s shock vote, as a bounce in USD after optimistic U.S. data triggered the yellow metal to the psychological level of $1,300.
Also on Tuesday, the greenback touched a 13-day high vs. a basket of major currencies on bets for an increase in U.S. interest rates before the end of the year. The precious metal traded below $1,270 in anticipation of the U.S. nonfarm payroll report later on this week. Gold is likely to face some correction after a wave of sharp decline and decline to $ 1,290.
The U.S. dollar touched a 13-day high vs. a basket of major currencies backed by strong U.S. manufacturing sector. The U.S. dollar index hit 96 pips yesterday.
GBP fell as much as 1% negatively affected by Theresa May's Brexit speech at the Conservative conference last Sunday. Technically, Cable could decline further to $1.25 during the coming period.
Euro settled vs. USD and pared its losses as policymakers at the European Central Bank were looking at winding back its trillion-dollar bond-buying programme, a report said. Fiber settled at $1.12 vs. USD.
U.S. crude surged to $49 as investors continue to weigh the probability of a supply deal by the members of OPEC. Technically, crude could touch $50 by the end of the week.
The most important economic events:
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.