|Day's range||1,221.70 - 1,227.70|
The Aussie dollar has been very noisy during the trading session on Wednesday, pulling back rather significantly, but we can already start to see buyers jump into this market. I think the market is trying to go to the next major round number, just above at the 0.72 handle.
Rare element metals have become a vital part of U.S. national security this year, with one element in particular making investors extremely excited
Natural gas prices surged nearly 3% on Wednesday ahead of Thursday inventory report from the Department of Energy. Inventory levels are below the 5-year average range and the colder than normal weather is putting upward pressure on prices. Inventories are expected to draw by 85 Bcf according to Estimize. There is currently no tropical activity in the Atlantic or the Caribbean according to the National Oceanic Atmospheric Administration.
Gold prices edged lower and continued to trade sideways forming a bull flag pattern that is a pause that refreshes. The dollar gained traction against the Euro and the Pound despite softer than expected housing starts numbers. The weaker than expected US data was countered by softer inflation data in the UK and EU.
Based on the early trade, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the Fib level at $1235.80 and the 50% level at $1222.70.
Based on the early price action, the direction of the December WTI crude oil futures contract the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $70.62.
Analysts’ Views: Is It Time to Look at Gold Miners? Of the 21 analysts covering Barrick Gold (ABX), only 14.0% recommend a “buy” for the stock, the lowest percentage of “buy” recommendations among the senior miner stocks (GDX). The decline in analysts’ optimism is mainly due to consistent issues at some of its mines.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 7344.75. Taking out 7318.25 with conviction will indicate the selling pressure is getting stronger. The daily chart is also wide open to the downside with the next target angle coming in at 7163.75. So be prepared for an acceleration to the downside.
This year started on a lukewarm note for gold and gold miners, and things started worsening after April. Gold prices have failed to draw a bid in 2018 despite many market uncertainties, including trade war tensions, the emerging market (EEM) currency crisis, and other geopolitical concerns.
Stocks in Asia were broadly higher today after upbeat U.S. corporate earnings and encouraging economic data elevated Wall Street overnight.
Gold improved on Tuesday, but the market posted an inside move, which typically indicates investor indecision and impending volatility. Traders said the gains were related to short-covering. New longs appeared to be scarce since the rally in the equity markets forced them to re-evaluate their reasons for being long.
The market could witness significant buying interest around the 1.31 and 1.30 level, all which are strong support points. The 0.71 and 0.70 levels underneath are the strong support points and the market is likely to hold on the levels. The pair retraced from the 61.8% of the Fibonacci level at 111.50 level, an area which has been important in the past.
A semblance of stability is returning to financial markets as investors sweep aside trade disputes and global growth fears to focus on the US earnings season.
Based on the early trade, the direction of the December Comex Gold futures contract on Wednesday is likely to be determined by trader reaction to the 50% level at $1222.70.
Based on the early price action, the direction of the December WTI Crude Oil market on Wednesday is likely to be determined by trader reaction to the main 50% level at $71.61.
The shiny metal is in the middle of a surprise advance, posting the fastest rally since the Brexit vote as a surge in haven demand combines with seasonal buying. The sudden snap of its unlucky streak -- bullion has declined every month since April -- blindsided fast-money investors, but that could be good for gold bugs. The last time hedge funds were net short for an extended period, prices soared almost 10 percent as the positions unwound.
Crude oil markets continue to go back and forth during the trading session on Tuesday, as we simply don’t know where to go next. There are a lot of moving pieces right now, not the least of which will be the concern with Saudi Arabia all of the sudden. There are concerns as to whether they will increase production or not, and of course there are also demand concern.
Gold markets continue to grind sideways with a slightly upward tilt during the day on Tuesday, as we continue to see a lot of safety trade buying. The Gold markets have offered a bit of a safe haven as they have gotten extraordinarily cheap as of late, but at this point we are a bit overextended.
Adding to the dollar’s weakness was the consolidation of Treasury yields. After yields surged to multi-year highs last week, the rise in yields has subsided, reducing demand for the dollar. Gold improved on Tuesday, but the market posted an inside move, which typically indicates investor indecision and impending volatility. Traders said the gains were related to short-covering. New longs appeared to be scarce since the rally in the equity markets forced them to re-evaluate their reasons for being long. U.S. West Texas Intermediate and international-benchmark Brent crude oil futures settled higher on Tuesday after the American Petroleum Institute reported a surprise crude oil draw.
While we can expect some focus on the FOMC minutes, it’s all about the GBP and the EUR today, the EU Summit putting Brexit and Italy in focus.
Traders are monitoring the geopolitical tensions over the disappearance of the Saudi Arabia journalist, however, so far the news has been limited to the political sphere. Traders essentially want to know if the Saudis are responsible. How the U.S. will respond if they are and whether there will be any retaliation from Saudi Arabia.
Following a similar move by Poland, the central bank in Budapest now holds 31.5 tons of the metal, taking the share among total reserves to 4.4 percent, in line with the average in the region, according to a statement published on its website Tuesday. Governor Gyorgy Matolcsy touted the move as a way to improve the security of the nation’s wealth and a nod to Hungary’s heritage as one of the world’s largest gold producers in the Middle Ages.
Global stocks trade mostly higher on Tuesday morning. The political tension between the US and Saudi Arabia over the disappearance of Jamal Khashoggi remains in focus.
Investors are likely to remain on the defensive this week as ongoing U.S.-China trade disputes, concerns over slowing global growth and geopolitical tensions dent risk sentiment.