Gold short-term analysis – 29 April 2022
Gold has bounced to a critical resistance level in a downtrend.
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Gold has bounced to a critical resistance level in a downtrend.
Last Thursday, Fed Chair Powell hinted at a 50 bps hike for May. He also endorsed an acceleration in the raising of rates. Moreover, the market is preparing for these to be front-loaded over the next few meetings. The ECB is also growing more hawkish, and EU CPI came in at 7.2%. Twitter has agreed to Elon Musk's offer of $54.20 per share in a takeover, and this week will…
Gold declines, and the dollar finds a bid as market participants prepare for Fed front-loading.
There is an excess demand for oil, which is likely to support price.
The pair makes a relief rally, as markets seem at a better place today, after narrowly avoiding fresh 2022 lows on Tuesday
Our market specialists discuss inflation in this week's podcast, specifically PPI's influence on core CPI. The ECB confirms that its APP will conclude in Q3 and Elon Musk makes an unsolicited bid for Twitter. We also talk about USDJPY and its seven weeks of dramatic rise. This week has notable central bankers speaking at the spring meetings of the IMF, and it's an important week for earnings.
The PPI spike makes it difficult to call a top to core CPI.
Even though core CPI moderated, it is too early to call for a top in inflation.
Read the daily market update as the European session is about to get underway, to get some of the latest developments, main market moves and upcoming events
Data from yesterday and today showed another inflation jump in the US and the UK, while markets also assess UK politics, with the pair mixed today, unable though to avoid new lows for the year
Read the daily market update as the European session gets underway, to get some of the latest developments, main market moves and upcoming events
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