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Gold price started the new year on a strong bullish note. The precious metal surged to a fresh 6-month high of $1848 on Tuesday lifted by expectations that the global central banks will slow down its tightening campaign in coming months.
Moving ahead, this week the metal could continue to strengthen due to its status as a safe haven asset, but the long-term direction of the gold price will depend on the US employment report which will release on Friday.
The technical scenario is absolutely bullish after the price break above $1835 zones. While considering the recent bullish rally the metal may find strong resistance in the area of $1850/65 where the price has strong resistance.
EQUITIES
US stock futures opened flat while European shares opened lower after the latest PMI data showed that the Eurozone's and the German manufacturing downturn eased in December. On the other hand, Chinese shares traded lower on Tuesday due to mixed economic data and rising coronavirus cases in China.
OIL
Crude oil futures are moderately higher in early European trading Tuesday, as the oil price has quickly rebounded from early morning selling pressure. While the upside momentum is limited as Investors remained concerned over the economic outlook for the new year, underpinned by growing fears of recession.
CURRENCIES In the currency market, the dollar index, which measures the currency against six major peers slightly recovered from the early losses. However, the US dollar is expected to remain under pressure in the near term as investors price in the adoption of a more dovish stance from the Fed. For this week, the main drivers for the Dollar will be the US FOMC meeting minutes, the US job report and the resurgence of coronavirus cases.
GOLD
The precious metal slightly retreated after reaching fresh 6-month highs. As of this writing, the metal trades near $1840. Moving ahead to the North American session, the investors should closely monitor the release of US manufacturing data.
Economic Outlook
On the data front, the latest Chinese economic data showed the Caixin China General Manufacturing PMI fell to 49.0 in December 2022 from 49.4 in November, compared with the market consensus of 48.8.
Moving ahead today, the important events to watch:
Germany – Employment report: GMT – 08.55
Germany – CPI: GMT – 13.00
US – Manufacturing PMI: GMT – 14:45
Coronavirus update:
Worldwide, more than 665 million people have been confirmed infected and more than 6.69 million have died. The United States has confirmed over 102 million cases and has had more than 1.11 million deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: For today, the first key support level is located at 1.0600. In case it breaks below this level, it will head towards the next support level which is located near 1.0550. On the upper side, If the pair regains upside momentum and press back above 1.0680 then the key resistance area to watch is 1.0710.
The important levels to watch for today: Support- 1.0600 and 1.0570 Resistance- 1.0680 and 1.0710.
GOLD: For today, the key resistance is located around $1850, a break above this level will confirm a possible move to $1855/60. On the downside, any meaningful pullback now seems to find some support near the $1835/30 zones.
The important levels to watch for today: Support- 1832 and 1826 Resistance- 1850 and 1855.
Quote of the day - “From a strictly economic point of view, buying gold in a major inflation and holding it probably presents the least risk of capital loss of any investment or speculation” – Henry Hazlitt.
Read more here - https://gulfbrokers.com/en/daily-market-report-594
Moving ahead, this week the metal could continue to strengthen due to its status as a safe haven asset, but the long-term direction of the gold price will depend on the US employment report which will release on Friday.
The technical scenario is absolutely bullish after the price break above $1835 zones. While considering the recent bullish rally the metal may find strong resistance in the area of $1850/65 where the price has strong resistance.
EQUITIES
US stock futures opened flat while European shares opened lower after the latest PMI data showed that the Eurozone's and the German manufacturing downturn eased in December. On the other hand, Chinese shares traded lower on Tuesday due to mixed economic data and rising coronavirus cases in China.
OIL
Crude oil futures are moderately higher in early European trading Tuesday, as the oil price has quickly rebounded from early morning selling pressure. While the upside momentum is limited as Investors remained concerned over the economic outlook for the new year, underpinned by growing fears of recession.
CURRENCIES In the currency market, the dollar index, which measures the currency against six major peers slightly recovered from the early losses. However, the US dollar is expected to remain under pressure in the near term as investors price in the adoption of a more dovish stance from the Fed. For this week, the main drivers for the Dollar will be the US FOMC meeting minutes, the US job report and the resurgence of coronavirus cases.
GOLD
The precious metal slightly retreated after reaching fresh 6-month highs. As of this writing, the metal trades near $1840. Moving ahead to the North American session, the investors should closely monitor the release of US manufacturing data.
Economic Outlook
On the data front, the latest Chinese economic data showed the Caixin China General Manufacturing PMI fell to 49.0 in December 2022 from 49.4 in November, compared with the market consensus of 48.8.
Moving ahead today, the important events to watch:
Germany – Employment report: GMT – 08.55
Germany – CPI: GMT – 13.00
US – Manufacturing PMI: GMT – 14:45
Coronavirus update:
Worldwide, more than 665 million people have been confirmed infected and more than 6.69 million have died. The United States has confirmed over 102 million cases and has had more than 1.11 million deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: For today, the first key support level is located at 1.0600. In case it breaks below this level, it will head towards the next support level which is located near 1.0550. On the upper side, If the pair regains upside momentum and press back above 1.0680 then the key resistance area to watch is 1.0710.
The important levels to watch for today: Support- 1.0600 and 1.0570 Resistance- 1.0680 and 1.0710.
GOLD: For today, the key resistance is located around $1850, a break above this level will confirm a possible move to $1855/60. On the downside, any meaningful pullback now seems to find some support near the $1835/30 zones.
The important levels to watch for today: Support- 1832 and 1826 Resistance- 1850 and 1855.
Quote of the day - “From a strictly economic point of view, buying gold in a major inflation and holding it probably presents the least risk of capital loss of any investment or speculation” – Henry Hazlitt.
Read more here - https://gulfbrokers.com/en/daily-market-report-594
