|Day's Range||1,200.90 - 1,205.30|
Investing.com - The dollar's strength is slowly and surely constricting gold, and it may just be days before bullion's $1,200 support is broken.
Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the 50% level at 25526.
The S&P 500 continues to look soft during the trading session on Monday, as we are breaking well below the 2750 level.
Crude oil markets did bounce a bit during the trading session on Monday, after Saudi Arabia has suggested that they may look into cutting back production. We are also at major round figures in both grades that we follow here at FX Empire, so a bounce does make sense. However jumping “all in” is probably rather difficult at this point.
Natural gas markets rallied significantly during the early hours on Monday but found a bit of resistance near the $3.90 level. The market has gotten far ahead of itself, and of course we have a gap below underneath that should be filled given enough time.
Gold markets fall to kick off the week, reaching down towards the $1200 level. That being the case, it looks as if the market will probably continue to struggle a bit, but I do see quite a bit of support just below, extending down to the $1185 handle.
The Australian dollar has fallen a bit during the trading session on Monday to kick off the week, as we have initially tried to rally, but then broke down a bit from there. At this point, the 0.72 level is the door to lower pricing.
As Positive Catalysts for Gold Emerge, Which Miners May Benefit? Its stock price, analysts’ estimates, and its multiple took a severe hit after the Guatemalan government’s decision to suspend its Escobal mine license in July 2017. Next comes Hecla Mining (HL) with a multiple of 5.8x, representing a discount of 4.5% to its peers.
As Positive Catalysts for Gold Emerge, Which Miners May Benefit? Among senior gold miners (GDX), Newmont Mining (NEM) has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 7.6x. At a time when growth is difficult to come by in the gold mining space, Newmont Mining has a strong project pipeline with very low execution risk.
Global trade tensions and potential debt contagion from Europe’s weaker economic regions has added to the uncertainty and prevented potentially bullish investors from buying on dips.
Recent price action in the U.S. dollar is showing another attempt to make a clear break above parity against the Swiss franc. On several occasions, traders bullish on the USD/CHF have failed in their attempts to move into these areas. Since last November, this is the fourth time the USD/CHF currency pair has tried to overcome these resistance levels. But most of the evidence suggests that this most recent attempt could be stronger in terms of its directional influence on the longer-term timeframes. All of this prior activity has created a triple-top formation on the daily charts, and so a clear break higher from current levels would mark a highly bullish event for those long USD/CHF.
As Positive Catalysts for Gold Emerge, Which Miners May Benefit? Among intermediate gold miners (GDXJ), Agnico Eagle Mines (AEM) has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 10.6x, which implies a whopping premium of 76.0% to its close peers. AEM’s strong operational consistency and its exploration program support a higher multiple for the stock.
BHP Billiton (BHP) stated that it will meet contractual supply commitments to its customers despite having to forcibly derail a runaway iron ore train in Western Australia.
The initial headlines coming out of the OPEC meeting in Abu Dhabi that Saudi Arabia has committed itself to lower production output should be enough to prevent the value of Oil falling any further, at least for now.
Gold prices fell to their lowest in one month as the dollar strengthened amid expectations that the U.S. Federal Reserve is on track to tighten borrowing costs.
Investing.com - Gold prices were little changed on Monday as the dollar traded near 16-month highs and traders awaited U.S. inflation data due later this week.
Based on last week’s close at $1208.60, the direction of the December Comex Gold market this week is likely to be determined by trader reaction to the 50% level at $1206.60.
Fundamentally, a bearish tone was set by the Fed last week and this tone is likely to continue this week as long as Fed speakers and the economic data continue to support the central bank’s plan to raise rates in December.
It’s a busy week ahead, with key stats to drive the majors along with geo-political risk, with Italy, Brexit and the U.S – China trade war in focus.
Investing.com - The oil bears vs. OPEC showdown is coming down to the wire. And across crude markets the question almost everyone seems to be asking is: can oil prices go any lower?
Investing.com - Oil isn't the only commodity getting hammered these days. Gold's key support of $1,200 could also be under attack, with investors seeing little upside for the yellow metal amid the string of U.S. rate hikes forecast.
Gold prices tumbled following a hotter than expected producer price index, as yields in the US moved higher. The dollar gained traction against the Euro which paved the way for lower gold prices. The risk off trade that ensured on Friday did little to help gold prices gain traction.
Natural gas markets exploded higher during the week, gapping on Monday, and quite frankly haven’t really looked back since. Colder than anticipated winter temperatures are coming to parts of the United States that should drive demand higher.