|Day's range||1,234.10 - 1,241.70|
According to a report by the World Gold Council (or WGC), holdings in gold ETFs rose for the second consecutive month in November to 21.2 tons to a total of 2,365 tons. It also said that the global gold-backed ETF flows are now positive in US dollar (UUP) terms for the year. ETF flows were positive for the first time in four months. The renewed buying interest from investors was on account of increased market volatility and the equity market sell-off.
Could Market Risks Bring Investors Back to Gold in 2019? Last week turned out to be great for gold prices (GLD). As equity and bond markets continued to struggle, gold made the best of the situation.
Silver prices have fallen almost three times as much as gold prices have in 2018 thus far. While the SPDR Gold Trust (GLD) has fallen 4.8% year-to-date, the iShares Silver Trust (SLV) has fallen 14.6% in the same period. Silver (SIL), on the other hand, has had no such luck.
Barring any major changes in the supply/demand situation, the direction of the WTI futures contract today is likely to be determined by trader reaction to the 50% level at $52.19. The pivot for the Brent futures contract is $60.75.
Based on the early price action and the current price at $52.48, the direction of the February WTI crude oil futures contract the rest of the session is likely to be determined by trader reaction to the pivot at $52.19.
The primary downside target zone at this time is $1236.70 to $1232.00. Since the main trend is up, we’re expecting to see buyers re-emerge on a test of this zone. The price action is expected to continue to be largely influenced by the direction of the U.S. Dollar. Other contributing factors to a further sell-off will be rising Treasury yields and increased demand for higher risk assets.
The Federal Open Market Committee (FOMC) will hold a two-day meeting on December 18-19. It is expected to raise its benchmark interest rate 25 basis points, however, the focus for investors will be on the number of rate hikes protected for next year. Expectations for further rate hikes in 2019 have tempered lately due to fears of weakening U.S. economic growth.
the pair plays tug of war for upper hand as both sides lack decisive factor to push a breakout price action while fundamentals so far favor EUR bulls.
Natural gas prices edged lower on Thursday following a draw in natural gas inventories that was in line with expectations. The weather over the next 8-14 days is expected to be warmer than normal which should weigh on natural gas prices as heating demand slips. Natural Gas prices moved lower on Thursday, making a lower low and a lower high which is a sign of a downtrend.
Gold prices edged lower on Thursday as import prices moved lower and jobless claims tumbled. The dollar was also mixed making it difficult to get a gauge on gold prices. As trade discussing with China continuing to improve the risk off trade which helped buoy gold prices is abating.Technical Analysis
Stock markets in America rallied a bit during the trading session on Thursday, grinding to the upside from what has been the bottom of the overall consolidation. The market is starting to look a bit tired at this point, and quite frankly I think it’s getting very confused.
Silver markets rallied a bit during the trading session on Thursday, reaching towards the $15 level. This is a market that has a lot of range bound qualities to it, but there are clear markers that we should be paying attention to.
Crude oil markets fell again during the trading session on Thursday, reaching down towards the vital support. We did break down quite yet, but it certainly looks a bit ominous at this point in time.
Natural gas markets rallied a bit during the day on Thursday as we came back from a major support level. Ultimately, the market looks as if it is trying to reach resistance above.
Gold markets continue to look like they are trying to break out to the upside, but we are in an area of major resistance at the same time.
EU markets were flat and mixed in early trading, both before and after the release of the ECB’s policy statement. In the US futures trading indicated a flat open for the major indices.
Today the economic calendar is highlighted by the ECB monetary policy statement at 14:45 MT time. The European central bank is anticipated to end its quantitative easing policy soon
ETH is likely to stay under selling pressure at least until the Constantinople is over as traders prefer to take a wait-and-see approach owing to high risk and uncertainty.
Optimism surrounding Sino-U.S. trade talks and positive headlines related to trade activities from China boost investors risk appetite.
It’s a big day for Europe, with the ECB Press Conference to drive the EUR and Theresa May’s last ditch efforts in Brussels to influence the GBP.
Gold prices edged higher following the Labor Departments report on consumer prices. Gold prices broke out above resistance on Friday following a softer than expected employment report but has since ease and forming a bull flag continuation pattern.Technical Analysis
US stock markets rallied significantly during the trading session on Wednesday again, testing the highs from the Tuesday shooting star in the S&P 500. At this point, it looks as if we are currently stock within consolidation, and with this green candle, things can hold out we could go higher.