|Day's Range||1,200.30 - 1,208.20|
(Reuters) - Canada's main stock index edged higher on Tuesday, boosted by gains in energy companies as oil prices rose on signs that OPEC may not raise output to address shrinking supplies from Iran. * U.S. crude prices were up 1.9 percent a barrel, while Brent crude added 1.8 percent. ** Also boosting the TSX was a 0.7 percent rise in the materials group , which includes precious and base metals miners and fertilizer companies. * Nine of the index's 11 major sectors were higher, led by a 2.2 percent rise in healthcare sector. * At 9:58 a.m. ...
Gold may be under pressure early Monday, but we’re not seeing aggressive shorting. This suggests the tariff news may have already been priced into the market. Furthermore, we’re not really seeing the shedding of risky assets with U.S. stocks trading higher after recovering from early session losses. Additionally, the USD/JPY is also trading higher. This is further evidence that investors aren’t being too rattled by the tariff news.
November WTI and December Brent Crude Oil should continue to push higher throughout the session as long as a possible supply shortage remains the theme. The rally could stop and prices could turn lower if someone counters with concerns over future demand in the wake of the announcement of additional tariffs on China by the United States.
This area has been a lot noisier in the past few session and the market is facing extreme difficulty in moving higher. The silver market rallied significantly during the yesterday’s session but continued to trade in a range bound fashion. The $14.35 level continues to offer strong resistance to the silver prices while $14.10 level underneath is offering strong support.
Investing.com - Gold prices inched lower on Tuesday despite the announcement that the U.S. is slapping 10% tariffs on $200 billion in Chinese goods.
Effects of Sino-U.S. trade war escalation due to US Government announcing tariff on Chinese goods is felt across all USD denominated instruments.
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Investing.com - Oil prices slipped on Tuesday morning in Asia as the U.S. vowed to impose 10% tariffs on a further $200 billion worth of Chinese goods on Monday, which rattled the markets.
The Australian dollar has rallied significantly during trading on Monday to kick off the week, as the 0.7150 level has offered support. I think at this point, it looks as if we are going to continue to go back and forth based upon belief of tariffs being levied on China.
Another set of tariffs on China supporting the U.S Dollar early on, with the RBA meeting minutes failing to give the Aussie Dollar a boost.
Natural gas prices rebounded higher and continues to trade in a tight range. There are few disturbances that could threaten infrastructure in the Gulf of Mexico, which has taken some of the wind out of prices. Demand continues to remain subdued despite a tick up in residential demand due to warm weather that is forecast to cover most of the United States for the next 2-weeks.
Gold prices moved higher but continue to trade sideways, as the dollar was also consolidating and losing ground to the Euro. While interest rates differentials continue to point to a stronger dollar the recent inflation data points to decelerating US inflation expectations. Gold in general moves in the opposite direction from the dollar as the yellow metal is priced in dollars and becomes more expensive as the dollar gains ground. The trade spat between the US and China is continuing to accelerate as the White House announced another potential round of tariffs. Gold prices moved sideways on Monday gaining a little bit of ground, as markets continued to focus on the trade spat between the US and China. Prices were unable to recapture short-term support near the 20-day moving average near 1,324. Additional resistance is seen near the 50-day moving average at 1,327.
It has been a fairly cautious start to a busy trading week with movements observed across currency and stock markets somewhat muted as investors remained on the side-line
The SPDR Gold Trust ETF (GLD) has fallen ~8.4% year-to-date and ~11.5% from its April peak. September is usually a stronger month for gold after the summer doldrums. In this September, however, investors could remain in a wait-and-see mode until the Federal Reserve’s September 25–26 meeting is over.
Based on the early price action, the key area to watch is the Gann Angle/50% price cluster at 1.1626 to 1.1625. Early in the session, the EUR/USD tested this area. A sustained move over 1.1626 will indicate the presence of buyers. If this move gains enough traction then look for a minimum test of 50% of the break from 1.1723 to 1.1618. This intraday target is 1.1671.
Investing.com - Gold prices and the U.S. dollar both slipped on Monday as the United States is set impose a new round of tariffs on Chinese imports.
The early price action and the relatively low volume suggests we’re likely to see a rangebound trade today. Traders may be taking a breather from last week’s volatile, two-sided price action. At the start of the session today, the offsetting issues remain the same. On the bullish side, investors are worried about the impact of the U.S. sanctions on oil supply. They are betting that slashing Iran’s exports will cause a tightening in the market. Bearish traders are banking on Saudi Arabia and other non-OPEC producers to make up most of the shortfall from the Iran sanctions.
Based on last week’s price action, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the pivot at $1194.30. Basically, look for an upside bias to develop on a sustained move over $1208.00, and watch for a downside bias to develop on a sustained move under $1184.80.
Gold could start the week under pressure if reports from over the week-end are accurate. The Wall Street Journal reported Saturday, citing individuals familiar with the matter that President Trump is planning to impose a fresh round of tariffs targeting about $200 billion in Chinese goods.
The timeline of the events are basically driving the price action, however. The sanctions start in November so that is a more immediate concern for traders. Any worries about demand will come later. Therefore, tightening at this time is the major worry underpinning prices. Additionally, this market is extremely vulnerable to any unexpected supply disruption and if one occurs, prices could spike sharply higher.
Oil prices pulled back early Friday amid concerns additional U.S. tariffs would be placed on China, leading to a potential drop in demand. gold gave back most of its gains on Friday due to upbeat U.S. retail sales and consumer confidence reports. A report that President Trump told his aides to proceed with tariffs on about $200 billion worth of Chinese imports also rattled investors.
The British pound initially tried to rally during the day on Friday but rolled over as it was revealed that Labour is likely to vote against the Brexit deal. This of course has people worried about the British pound, so a pullback makes complete sense.
Gold markets went back and forth during the course of the week, showing a bit more in the way of upside momentum than down but ultimately closed relatively unchanged. The market looks likely to continue to be a bit noisy in general down here, because it was a low from before.
The British pound rallied significantly for the week against the Japanese yen, as we approached a significant downtrend line. However, we have broken through the top of two shooting stars and as such we have a hint as to where we are heading next.
Crude oil markets were very volatile during the session on Friday, initially shooting straight up in the air, but then pulling back later on as more Chinese trade tariffs are feared.