A lot is going on across the pond, what will happen if England exits the EU, and why is the Dollar falling against the YEN?
Gold soured for a four-week high on Monday as the dollar plunged and Asian stocks tumbled ahead of key central bank meetings this week.
Looking for some good analysis of the currency market, how does Oil and Gold look….
The EURUSD repelled down from near-term key resistance up near 1.1337 area last week, losing ground for the week. However, we can see price is still trading above the key near-term support at 1.1080 which we have discussed in our recent commentaries as a ‘line in the sand’ for buyers in this pair right now.
Will commodities go up has world economies and currencies weaken….
In our recent commentaries we have discussed looking to buy Gold from the support zone near 1200.00 – 1180.00. We can see that price has pulled back to that support and today formed aninside bar pattern right at that 1200.00 level. Traders can consider getting long from this inside bar if it breaks higher, or another option is to wait and see if price rotates further down into this support zone and forms a buy signal closer to 1180.00. Either way, we see the potential for Gold to continue higher following this recent pullback to support.
The Yuan continues to be adjusted as time moves on – and world markets are feeling the pinch….
Concerns over China sparked a rally in gold to its highest since mid-July at $1,126.31 an ounce last week, in the wake of Beijing’s mini-devaluation of the yuan.
Analysts speculated that a weakening Chinese currency could prompt the Federal Reserve to postpone a rise in U.S. interest rates, which had been expected as soon as next month.
Expectations for a rise in rates this year, which would lift the opportunity cost of holding gold while boosting the dollar, pushed the metal to a 5-1/2-year low of $1,077 last month.