|Day's Range||1,268.40 - 1,273.10|
The S&P 500 fell during most of the week but turned around the show signs of life again towards the end of the week. The hammer being formed of course is a bullish sign and it shows just how much pressure is building up underneath, perhaps in a sign that we are going to explode to the upside.
Gold markets fell during the week, breaking down towards the $1260 level before bouncing. However, we still have a significant amount of negativity ahead of us from what we can see, as the uptrend line being broken was a big deal. If we do get a rally from here, it could be a selling opportunity.
The S&P 500 rallied a bit during the Friday session, gaining over 0.5% during the day. The market has found support at 2750, which of course is a large, round, psychologically significant figure.
Crude oil markets rallied significantly during the trading session on Friday, accelerated by the fact that the OPEC meeting only produced a production increase of 700,000 barrels, as opposed to what people had anticipated being an increase of 1 million barrels.
The British pound rallied quite nicely against the US dollar during the day on Friday, breaking above the 1.3250 level. By making a fresh, new high, it is a good sign, but at this point there is a significant amount of resistance above as well. Ultimately, we have a lot of work to do if we are going to turn things around.
The Australian dollar has rallied rather significantly against the US dollar during trading on Friday, slicing above the 0.74 level. Because of this, I think that we are going to continue to see some upward pressure in this market, as we have formed a “W pattern” on the hourly chart, which of course is very bullish. However, the market seems to have a bit of a ceiling above, so although I see a buying opportunity, it is probably short term.
Natural gas prices edged lower on Friday, following Thursday’s larger than expected build in natural gas inventories. The EIA reported at 91 Bcf build compared to expectations that inventories would rise 85 Bcf. Warmer than normal weather is forecast to cover most of the United States for the next 8-14 days. This should buoy cooling demand. Support is seen near the upward sloping trend line near 2.90. Short term resistance is seen near the 10-day moving average at 2.95. Additional resistance is seen near the June highs at 3.05. ...
The S&P 500 gained 11 points or 0.41% to 2,761.92 as of 9:42 AM ET (13:42 GMT) while the Dow composite increased 144 points or 0.59% to 24,606.55 and tech heavy NASDAQ Composite fell over nine points or 0.13% to 7,703.28.
Gold prices consolidated after rebounded late on Thursday, as the dollar gave up some of its gains at the tail end of the week. Stronger than expected Eurozone PMI data helped the euro gain ground paving the way for higher gold prices. Canadian CPI grew in line with expectations, notching up a robust 2.2% year over year figure. Gold prices broke down at the tail end of the second week of June, and resistance is seen near the 10-day moving average at 1,282.
The CFTC (Commodity Futures Trading Commission) reports the position of major players in the futures market through its COT (Commitment of Traders) report. This report specifies the positioning of various players in the market. It is released every Friday and shows the open interest recorded on the previous Tuesday.
Is It Time to Turn Bullish on Gold after Its Recent Weakness? Physical gold demand, especially from India and China, traditionally supports gold prices (GLD) when prices are weakening. Gold consumers in these markets are price conscious and usually load up on gold when prices are falling.
ABN Amro believes that there is more downside to gold prices (IAU) from the current levels, although it would be temporary. The firm sees gold prices falling to $1,250 per ounce by the end of 2018 before rallying in 2019. It believes the US dollar’s (UUP) strength could the major driver of gold’s weakness in 2018.
These two gold stocks have been pretty evenly matched in the last three- and five-year periods. How will they do going forward?
Investing.com – Gold prices recovered from a 6-month low on Friday as the dollar slipped after hitting a 11-month peak earlier in the day.
Crude oil markets continue to be very choppy during the trading session on Thursday, although a bit softer in general. The market looks likely to continue to go back and forth as we wait to see what OPEC will do about its production cuts, which obviously has a major influence on oil markets overall.
Gold markets continue to drift lower, as Thursday saw more selling. The market breaking below the $1275 level is of course a negative turn of events, and it means that we will probably go looking towards the $1250 level next. As I record this video, we are starting to get a bit of a bounce, but that’s probably short-term at best.
The US dollar fell during the Thursday trading session against the Japanese yen, slicing down towards the ¥110 level again. As I record this, it looks like the market is trying to form a bit of a bounce, and the support certainly seems to be there. The ¥110 level continues to be an area of importance.
After the Bank of England statement during the day on Thursday, the British pound rallied rather significantly against the Japanese yen, reaching towards the ¥146 level. As the market has reacted so strongly, it does suggest that perhaps we are starting to firm up again, as the statement was a bit more hawkish than previously released statements.
The Euro rallied significantly during the trading session on Thursday after initially dipping towards the 1.15 handle. That’s an area that has been important more than once, and it is a major level on the longer-term charts. Because of this, a bit of a relief rally is not much of a surprise.
The Australian dollar has bounced from the vital 0.7350 level again, forming a bit of a “double bottom” on the hourly chart. The 0.7350 level is an area that is important on the longer-term charts, and at this point I think that if the market can break above the recent high at the 0.7415 level, the market could turn things around for the short term.
Investing.com – WTI crude oil prices settled lower Thursday as major oil producers neared a deal to hike oil production by about one million barrels per day to avert a possible supply shortage and stabilise prices.
The risk of a global trade war helped buoy gold prices. Target support on the yellow metal is seen near the December 2017 lows at 1,236. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.
But the setup has strengthened, and I'm buying what I like to call "the most expensive doorstop" in the world for the first time since the 2016 U.S. presidential election. The catalyst for the break in gold prices was this strength in the greenback, highlighted by the dollar's bullish "golden cross" when its 50-day moving average crossed over its 200-day moving average earlier this month.