Jump to content

GOLD under pressure with US rate hike looming


Guest FoxTrader

Recommended Posts

Guest FoxTrader

As if Gold needs more pressure - not good for Gold Bulls :(

 

Mostly from Investing.com ;

 

Gold futures fell sharply on Monday, but still stuck in familiar trading range, as market players prepared for the first U.S. rate hike since 2006 later this week.

 

The Federal Reserve is widely expected to raise interest rates for the first time in nearly a decade at the conclusion of its two day policy meeting at 2:00PM ET on Wednesday. The central bank will also release its latest forecasts for economic growth and interest rates.

 

Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for signals about the path of future rate hikes. Many in the market anticipate the pace of increases to be gradual amid concerns over tepid growth overseas and divergent monetary policies between the U.S. and other nations.

The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.4% to 98.00. Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

 

Gold for February delivery on the Comex division of the New York Mercantile Exchange slumped $10.30, or 0.96%, to trade at $1,065.60 a troy ounce during European morning hours. On Friday, gold fell to $1,061.70, the lowest since December 4.

The yellow metal is on track to post an annual decline of 9% in 2015, the third yearly loss in a row, as speculation over the timing of a Fed rate hike dominated market sentiment for most of the year. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

Meanwhile, silver futures for March delivery dipped 8.9 cents, or 0.64%, to trade at $13.79 a troy ounce. Prices slumped to a daily low of $13.75 on Friday, a level not seen since August 2009.

 

Elsewhere in metals trading, copper fell from a two-week high as a broadly stronger U.S. dollar reduced the appeal of the red metal, but losses were limited following the release of better than expected Chinese economic data over the weekend.

The National Bureau of Statistics said Saturday that industrial production rose by an annualized rate of 6.2% in November, the fastest pace in five months.

 

The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.

 

Happy days

Link to comment

Archived

This topic is now archived and is closed to further replies.

  • image.png

  • Posts

    • Apple’s recent stock weakness marks a divergence with other members of the Magnificent 7 and the broader Nasdaq 100. Source: Bloomberg   Indices Shares Apple Inc. Artificial intelligence Price iPhone Written by: Chris Beauchamp | Chief Market Analyst, London   Publication date: Friday 01 March 2024 13:26 AI Efforts in Question Apple's stock fell below $180 on Thursday for the first time since early-November, underperforming the broader market. While the S&P 500 and tech-heavy Nasdaq indices posted solid gains, Apple shares slipped around 1%. Source: Google Finance The decline comes as doubts loom about Apple's artificial intelligence (AI) initiatives. Rivals like Microsoft are delivering strong earnings growth tied to burgeoning AI technology. This was highlighted by Tuesday's report that Apple is discontinuing its decade-long electric vehicle project. Back in 2017, Apple CEO Tim Cook called the autonomous car endeavour the "mother of all AI projects." Stock Underperforms Broader Market So far in 2024, Apple shares have dropped 3%, trailing the S&P 500's 7% gain and the Nasdaq's 9% climb. Despite its long-term market-beating returns, Apple has recently lagged the S&P 500 on 6-month, 1-year, and 2-year timeframes, according to FactSet data. After spending most of 2021 to 2023 as the world's most valuable public company by market capitalization, Apple surrendered that crown to Microsoft in January. Microsoft's sales and profit growth have far outpaced Apple's, which posted negative growth in its 2022 fiscal year ending last September. AI Investment Hints but Details Lacking At Wednesday's shareholder meeting, Cook suggested Apple is "investing significantly" in generative AI. He said more specifics will be announced later this year. UBS analyst David Vogt predicts Apple's first major AI launch will come in June at its annual Worldwide Developers Conference. iPhone Sales Weakness Looms In addition to AI uncertainties, expectations for weak iPhone sales growth continue to weigh on Apple. iPhones accounted for 58% of Apple's total revenue last quarter. Some See Positives in Car Project Halt Some analysts see a silver lining in the halt of Apple's electric car plans. It enables the company to refocus AI talent on nearer-term products with greater market potential. To Morgan Stanley, it also shows Apple's "cost discipline." Apple analyst rating LSEG (formerly known as Refinitiv) data shows a consensus analyst rating of ‘buy’ for Apple with 10 strong buy, 17 buy, 13 hold and 2 sell – and a mean of estimates suggesting a long-term price target of $201.41 for the share, roughly 16% higher than the current price (as of 1 March 2024). Source: LSEG Technical outlook on the Apple share price The Apple share price continues to precariously weigh on its $180.30 to $179.25 support zone which consists of the January-to-February lows. A fall through and daily chart close below this area looks increasingly likely and would lead to levels being reached which were last traded in early-November with the 3 November low at $176.65 representing the first downside target. Apple Daily Candlestick Chart Source: TradingView Further down sits the $174.49 August low below which key support can be spotted between the September and October lows at $167.62 to $165.67. Were the $180.30 to $179.25 support zone to hold, though, a rise and daily chart close above last week’s high at $185.04 would need to occur, for a recovery off the support area to gain traction. In this scenario the Apple share price would trade back above its 200-day simple moving average (SMA) at $183.90 and target the 55-day SMA at $188.50. This will continue to favour a fall through support at $179.25 to take place as long as the Apple share price continues to trade below last week’s high at $185.04.     This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
    • PG Elliott Wave Analysis Trading Lounge Daily Chart, 1 March 24 The Procter & Gamble Company, (PG) Daily Chart PG Elliott Wave Technical Analysis FUNCTION: Trend MODE: Impulse STRUCTURE: Motive POSITION: Minuette wave (ii) of {iii}. DIRECTION: Bottom in wave (ii).   DETAILS: As we are approaching ATH at 165$, we are expecting either an acceleration higher into wave (3) or else we could have topped in wave (C) to then fall back lower and continue the major correction.         PG Elliott Wave Analysis Trading Lounge 4Hr Chart, 1 March 24 The Procter & Gamble Company, (PG) 4Hr Chart PG Elliott Wave Technical Analysis FUNCTION: Counter Trend MODE: Corrective STRUCTURE: Zigzag   POSITION: Wave a of (ii).   DIRECTION: Downside into wave (ii). DETAILS: Looking for a clear three wave move into wave (ii) to finding support around the 155$ mark.   Welcome to our PG Elliott Wave Analysis Trading Lounge, your ultimate destination for detailed insights into The Procter & Gamble Company (PG) using Elliott Wave Technical Analysis. As of the Daily Chart on 1 March 24, we dive into crucial trends shaping the market.         *PG Elliott Wave Technical Analysis – Daily Chart* In terms of wave dynamics, we identify a trend function with an impulse structure, specifically a motive pattern. The current position is in Minuette wave (ii) of {iii}, indicating a potential bottom in wave (ii). With the approaching all-time high (ATH) at $165, we anticipate either an upward acceleration into wave (3) or a potential top in wave (C), followed by a downward movement to continue the major correction. *PG Elliott Wave Technical Analysis – 4Hr Chart* Here, we explore a counter trend mode with a corrective structure, specifically a zigzag pattern. The present position is in Wave a of (ii), suggesting downside movement into wave (ii). We anticipate a clear three-wave move into wave (ii), aiming to find support around the $155 mark.  
    • The new month kicked off with several stock market indices hitting record highs on Thursday. Japan's Nikkei Average, the S&P 500, and the Nasdaq all closed at fresh record peaks. The gains were buoyed by tech stocks like NVIDIA and Advanced Micro Devices. Stock markets are in an upbeat mood after US inflation figures came in line with expectations on Thursday. This helped shape forecasts for the timing of future Fed interest rate cuts. It extended the ongoing global equity rally and also pushed Treasury yields lower. The DAX also reached a new all-time high on Thursday. Europe opens today waiting for inflation data that should indicate inflation is moving back toward the 2% target. This comes after data showed inflation dropping in countries like Germany, France and Spain thanks to lower energy and food prices. The ECB has maintained record-high interest rates since September. Also on the calendar today is the US ISM manufacturing PMI.   
×
×
  • Create New...
us