Connect with us

Precious Metals

Daily market commentary: The US dollar hedges down

Gold Gold prices hedged up during early Tuesday trading, with the precious metal finding support amidst the US dollar losses of the last few sessions….

Share this article:

Published

on

This article was originally published by LeapRate

Gold

Gold prices hedged up during early Tuesday trading, with the precious metal finding support amidst the US dollar losses of the last few sessions. The price action of gold has in recent times been, to a large extent, determined by the oscillations in the value of the greenback, due to its inverted correlation with the currency. After last week, when the Fed hiked interest rates by 75 basis points, other central banks and authorities around the world have been telegraphing inflation related concerns, hinting at the need to further tighten policies, while doubts remain over how hawkish the US Federal Reserve is prepared to be. Against this background, the markets will listen attentively to Jerome Powell’s testimony to the US senate later this week.

Ricardo Evangelista – Senior Analyst, ActivTrades

European Shares

Shares climbed higher in Europe on Tuesday, extending gains registered during the Asian trading session, as risk aversion mood takes a break.

Even if the mid-term investing landscape remains blurry to most market operators at the beginning of this summer season, some investors looking for opportunities to buy shares at a discounted price have been reassured after President Biden said a recession wasn’t “inevitable”. Furthermore, the fact central banks are moving quickly towards a super hawkish stance in order to tame inflation is also perceived as good news by some, on the short-term at least. However, questions remain about the mid- to long-term economic outlook and traders around the world are highly likely to pay close attention to this week’s macro developments with the Senate and US House testimony from Jerome Powell, the ECB bulletin as well as major data such as the US jobless claims and Eurozone PMIs. Industrial shares are among the top performers today in Europe, boosted by soaring industrial metal prices. Markets are likely to be volatile as US investors are coming back from a long weekend, Bond markets are likely to set today’s pace on stocks.

The STOXX-50 index trades back above the 3,500pts level with 3580pts as its next resistance. The RSI shows a bullish break-out while the DMI indicator displays a dropping bearish pressure.

Pierre Veyret– Technical analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

The post Daily market commentary: The US dollar hedges down appeared first on LeapRate.

Share this article:

Economics

Doug Casey On The Death Of Privacy… And What Comes Next

Doug Casey On The Death Of Privacy… And What Comes Next

Authored by Doug Casey via InternationalMan.com,

International Man: In practically…

Share this article:

Continue Reading
Economics

How To Face Risk In An Uncertain World

How To Face Risk In An Uncertain World

Authored by MN Gordon via EconomicPrism.com,

Managing risk.  Mitigating uncertainty.  Is attempting…

Share this article:

Continue Reading
Economics

Can We Protect Ourselves from Inflation?

Rulers found out early on that they could debase gold and silver coins for their own gain. As a consequence, the money supply increased, whereas money’s…

Share this article:

Continue Reading

Trending