Greatest sale of gold since 2018

Greatest sale of gold since 2018

2022-12-16 • Updated

What happened?

Gold is heading for its first quarterly decline since 2018! The main reason for that is the strong US dollar, driven up by rising US treasury yields and Biden’s big spending plans. On Monday, US 10-year Treasury yields surged to the highest level unseen since last January, when the coronavirus has just started. It was caused by the overall market optimism over the successful US vaccine rollout as the US President claimed that 90% of US adult Americans would be able to get a vaccine by April 19. Moreover, on Wednesday, the president is expected to reveal his plans for a $3tn infrastructure package, which follows the recent $1.9tn fiscal stimulus bill. All that pushed gold down below $1700.

What does it mean?

Gold’s sell-off will continue further. First of all, gold tends to fall in time of market recovery and growth. Secondly, higher US Treasury yields increase the US dollar’s appeal and in opposite decrease the attractiveness of non-yielding gold for investors. According to ABN Amro NV, “support zone at $1650-$1670 an ounce will probably be tested” and then it may even fall to $1600. Indeed, after gold broke the key psychological mark of $1700 nobody doubts that the downtrend will continue.

Technical analysis

Gold is moving down inside the descending channel. It may meet the support at the 100-weekly moving average of $1660. It’s unlikely to break it on the first try, but if it finally manages to cross it, the way to the psychological mark of $1600 will be clear. On the flip side, if it reverses from $1660 and moves up, it will meet the resistance of $1750 at the March highs.

XAUUSDWeekly.png

TRADE NOW

Similar

Oil In The Geopolitical Lens: Soars And Dips Under The Influence Of Global Events
Oil In The Geopolitical Lens: Soars And Dips Under The Influence Of Global Events

Amid uncertainty driven by geopolitical events, oil prices surged to record highs. However, a correction in oil prices is observed with a gradual improvement in the situation in the Middle East and an increase in demand. The question facing investors is whether there are prerequisites for further price growth or if everything depends on the dynamics of the political landscape. In this article, we will explore the impact of recent events on the global oil market and the prospects for developing this crucial commodity sector.

How Will China’s Regulation Affect Oil?
How Will China’s Regulation Affect Oil?

China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.

Latest news

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XAUUSD: Will Gold Continue to Rally?
XAUUSD: Will Gold Continue to Rally?

Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera