Gold Runs Another Strong Week, But Loses Steam in Familiar Setup
XAU/USD runs it second straight profitable week on the back of a recently deflated USDollar, but it may struggle for further gains
Page 10 of 26
XAU/USD runs it second straight profitable week on the back of a recently deflated USDollar, but it may struggle for further gains
The commodity opened the new week on the back foot amidst trade worries and China’s commitment to the zero-Covid policy
The precious metal has started November in a good mood, trying to stop its seven-months losing streak, but awaits today’s Fed decision for the next leg of the move
There is optimism that China will reopen from their strict Covid policy. Given that it is the 2nd largest energy consumer, this will be significant. An unverified note on social media suggested that a "Reopening Committee" had been formed. With the OPEC+ cuts, this may catalyse further price appreciation and a higher peak.
The XAUUSD daily chart shows the precious metal slipping back into its bearish area between the lower blue and red bands. The last candle is still active, and its close will be necessary regarding its relative position.
Oil prices are subdued at the start of this week, unable to get a lift from Monday’s strong Q3 GDP from the world’s second largest consumer
The pace of central bank interest rate hikes and Covid restrictions in Shanghai and Shenzhen are taking massive tolls. These policies will likely cap crude prices, limiting any production cuts' support.
OPEC and allies, including Russia, agreed on Wednesday on deep oil production cuts, sending USOil to three-week highs
XAU/USD makes an upbeat start to the last quarter of the year, helped by USD weakness, breaking above key technical levels
Prices staged a rebound over the last couple of days, on the back of disruption due to hurricane Ian and lower weekly inventories, but face renewed pressure today and USOIL heads towards another losing month
XAU/USD rebounds from Monday’s sump to the lowest level in more than two years, but draws towards the conclusion of its sixth straight losing month
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.