FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
97,277,596Confirmed
2,081,532Deaths
69,828,325Recovered
Fetching Location Data…
Advertisement
Advertisement
Mauricio Carrillo
Gold Up To 1-Week Highs On Rick Aversion; DXY Back From Maximums
Gold Up To 1-Week Highs On Rick Aversion; DXY Back From Maximums

Gold is trading positive on the first day of the week as risk aversion is taking the market following political tensions in Libya and weaker US treasury and US dollar.

Market sentiment is weak on Monday as investors are digesting comments from US Secretary of State Pompeo calling the Lybian Army to stop offensive on Tripoli, Lybia’s capital.

Brexit concerns, uncertainty over China-US trade relations, and a wait and see mode ahead of Fed minutes of the last FOMC decision on Wednesday are fueling the risk aversion sentiment.

“The current rally in gold, whether it be short-covering or fresh speculative buying, may last until Wednesday’s release of the minutes from the Fed’s last monetary policy meeting,” FX Empire analyst James Hyerczyk said in a recent article.

“Gains may even be extended beyond that if the minutes reveal a more dovish central bank.”

US employment not that bright

On the other hand, Margaret Yang, CMC Markets analyst highlighted that “the dollar index is pulling back from multi-week highs,” as last Friday’s employment data brought pros and cons to the current US economy.

“Though the non-farm payrolls data was better than expected, the manufacturing jobs fell which is a bad signal for the sector and doesn’t show a bright picture for the economic outlook,” Yang said to CNBC.

Advertisement

Dollar index down from highs

The US Dollar index is trading negative on Monday as investors seem to be profit taking ahead the US earnings season and also risk aversion following political and economic tensions around the world.

DXY is currently trading 0.19% negative on the day at 97.18. The unit is retreating from Friday0s highs at 97.50, lifting gold to break the metal’s range traded last week.

Gold breaks the range above 1,295

XAUUSD daily chart Gold April 8

Gold is trading positive on Monday as a weak dollar is lifting the metal to fresh highs in a week.

After trading sideways last week between 1,285 and 1,295, the pair is currently breaking above that range to trade as high as 1,300, its highest level since March 29.

Currently, XAU/USD is trading 0.47% positive on the day at 1,297. Short- term trend is shifting, and technical indicators suggest more upside in the next few days.

FX Empire’s Hyerczyk believes that the current rally in Gold may last until Wednesday with the minutes from Fed’s last monetary policy meeting. “Gains may even be extended beyond that if the minutes reveal a more dovish central bank.”

In this framework, next resistance are at the 20-day moving average at 1,301, then 1,307, where the 50-day MA lies right now. Above there, 1,325 and 1,300 are the frontiers. Thought it would be complicated for the gold to get there this week.

Silver remains on the range, positive but…

XAGUSD daily chart Silver April 8

Silver is trading positive on the first day of the week amid risk aversion and its positive correlation with the XAU/USD.

XAG/USD is trading 0.43% positive on the day at 15.17; however, the unit remains in the range traded in the last week between 15.05 and 15.20.

Technical indicators look weak with studies recovering ground but still depressed. A break above the 15.20 area would give bulls the control and the 15.30 will be the next natural resistance.

Above there, 15.60 is the frontier to start thinking in a bullish trend.

To the downside, 15.05 and 15.00 are the support. Below there, 14.80 is a strong buying zone that would open the door for a congested area between 14.50 and the mentioned 14.80.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US