Jump to content

Gold Prices Eyeing $1,816 as Japanese and Chinese Data Beat Expectations


MongiIG

Recommended Posts

GOLD PRICE OUTLOOK:

  • Gold prices traded flat at around $1,816 on Monday after rising 1.6% last week
  • Japanese machinery orders expanded at 11.6%, Chinese GDP grew 4.0% - both beat expectations
  • Gold prices are eyeing $1,834 for immediate resistance, breaching which may open the door for further gains
image.jpeg

Gold held steadily during Monday’s APAC session after gaining 1.6% over the past week. A slew of upbeat economic data bolstered risk sentiment, defying fears about the negative impact of the Omicron variant on economic recovery. This may limit upside potential for the yellow metal, which is commonly viewed as a safe haven asset.

Japan’s core machinery orders, a leading indicator of capital spending, surged 11.6% YoY in November. This compared to a 6.1% estimate. The reading reflects an encouraging sign that private firms are spending and the broader economy is recovering at a faster-than-expected pace.

Chinese GDP expanded at 4.0% in the fourth quarter, beating economists’ forecast of 3.6%. industrial production grew at 4.3%, compared to a 3.6% estimate. Retail sales trailed behind consensus however, coming in at 1.7% YoY. Nonetheless, the overall picture shows that the world’s second- and third-largest economy are in a good shape of recovery, although the roadmap remains bumpy due to lingering effects of the pandemic.

Economic Calendar

Gold Prices Eyeing $1,816 as Japanese and Chinese Data Beat Expectations  Gold Prices Eyeing $1,816 as Japanese and Chinese Data Beat Expectations

Source: DailyFX

The DXY US Dollar Index is flat during Monday’s APAC trade, offering little clue about gold. The US markets are shut for a holiday on Monday, so trading volume may be lighter than usual. Gold prices are negatively correlated with the US Dollar. Their past 12 months of performance are highlighted below.

Investors have weighed the outlook for tightening monetary policy as US inflation rates run into four-decade highs. Although gold is perceived as a good inflation hedge, rising interest rate expectations have limited upside potential. This is because gold is a non-yielding asset, and it is likely to lose its appeal to investors in a rising interest rate environment.

Gold Prices vs. DXY US Dollar Index  Past 12 Months

Gold Prices Eyeing $1,816 as Japanese and Chinese Data Beat Expectations

Source: Bloomberg, DailyFX

Technically, gold prices remain in a range bound setup, waiting for fresh catalysts. Prices pulled back from an immediate resistance level of 1,834 (38.2% Fibonacci retracement), eyeing 1,809 (50% Fibonacci retracement) for support. Moving average lines are flattening, indicating a lack of clear direction in the near term. The MACD indicator is trending up, suggesting that upward momentum may be building.

Gold - Daily Chart

Gold Prices Eyeing $1,816 as Japanese and Chinese Data Beat Expectations

 

image.png

Written by Margaret Yang, Strategist for DailyFX.com. 17th Jan 2022.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • In the previous year, #bullrun2024 had been a trending hashtag as most crypto enthusiasts continually drooled over the prospects of witnessing another bull cycle. 2024 is finally here and so far so good has produced only fireworks. BTC has soared to 60k+, the market is green, and there’s a general sense that the bulls are returning. If there’s one thing that pays most in such bullish market, it is the flair to spot early gems and position oneself before a breakout. In that regard, Bitget has been my plug for a few years running. The early listing of $ORDI last year for instance before Binance listing 7 months after, and a surge ultimately is well documented. This year alone, Bitget has continued its wealth creation for users nicely, coins like $PORTAL, $GPT, $GTAI and so on have gone on to print for investors as depicted in the picture below. Web3 rewards not just active participation, but strategic positioning. There’s no gainsaying that the key to securing insane profits in this market is by positioning early and strategically too. Bitget’s eagle-eye for spotting early gem is a flex. Numbers don’t lie.  
    • Portal itself is awesome. Those who haven't got any airdrop, I think it's best time to accumulate for them.. tho, I'm gonna DCA....
    • Nope the hype is worth it. The project is dope itself as well as the team. Already deposited my bag at Bitget... Let's hope for the best 🤞
×
×
  • Create New...
us