Gold declines to 3-years Low
Gold declines to 3-years Low
On Friday, the greenback rose to a nine-month high against a basket of major currencies, as a risk-on mood in global markets triggered by Donald Trump's election to president remained intact. The USD has jumped as expectations that Trump's administration could boost spending, lift inflation and elevate Treasury yields took hold.
In addition, the U.S. dollar strengthened its gains against the Chinese Yuan and Mexican peso to reach historic highs on expectations that emerging markets could suffer more than others, if Trump turns his words into actions. U.S. dollar index settled at 99 pips.
Also on Friday, Gold prices declined to a five-month low as appetite for riskier investments improved after Donald Trump’s victory in the U.S. presidential election, and negatively affected commodities prices fall.
Gold declined to $1,218 at the end of last week’s trading session, before paring its losses and trading at $1,227. The yellow metal could touch the key support level of $1,210.
Euro fell vs. USD and settled at $1.0850 in anticipation of ECB President Mario Draghi’s speech. Due to decline in value of the single currency, Draghi is not likely to say something new at his speech today. Technically, Fiber could recover to $1.0930.
Oil prices fell as much as 2% at the end of last week’s trading session, on worries about oversupply and on doubts about whether OPEC will succeed in reducing a global crude glut. WTI settled at $43 and could decline further amid oversupply.
The most important economic events:
Disclaimer
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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