Jiren-SphynChannels

Jiren-SphynChannels Updated 

Gold has been on a rollercoaster this week with whipsaw price action sending mixed signals. A week that promised a lot did deliver on the volatility front but failed to provide any clarity on the possible direction of Gold prices moving forward. At the time of writing Gold trades at $1,954, just a smidge higher than last weeks close. The Fed's decision on...

Jiren-SphynChannels Updated 

Investors speculating in gold face a nuanced market. Gold prices remain neutral around $1,970/ounce, rebounding from a three-month support level at $1,939/ounce. The Federal Reserve's decision to keep interest rates unchanged caused a sell-off in gold, but it may still raise rates twice this year. Currently, gold is behaving more like a pro-cyclical asset than a...

Jiren-SphynChannels

Gold has tried lower but rallied off the floor after the US Dollar took a turn in the aftermath of rate decisions from the Federal Reserve and the European Central Bank this week. Gold’s recent dip below an ascending trend line and subsequent test of support levels in the $1.936 – $1.945 area might ask more questions than it answers. This may suggest that recent...

Jiren-SphynChannels

The Federal Reserve recently concluded a highly anticipated policy meeting, deciding to maintain the current benchmark interest rate at a range of 5.00% to 5.25%, aligning with market expectations. This unanimous decision, widely communicated by some senior members of the FOMC in recent weeks, indicates that policymakers remain consistent and agree on the...

Jiren-SphynChannels Updated 

Gold prices dropped due to weaker US dollar and rising bond yields ahead of the FOMC meeting. The monthly headline CPI for May was 0.1%, lower than the previous 0.4%, resulting in an annual rate of 4.0%, slightly lower than the expected 4.1% and the previous 4.9%. The core CPI was 0.4% in May, meeting expectations, and 5.3% compared to the same period last year,...

Jiren-SphynChannels Updated 

The gold market continues to decline after the Fed's interest rate decision led to a revaluation of expectations, with a rate hike expected in July. The highly anticipated inflation report revealed a contrasting outlook for the US. While inflation has dropped to 4% annually, the core CPI, which excludes energy and volatile food prices, still runs at 5.3%, a...

Jiren-SphynChannels Updated 

Gold prices slightly increased today as the market anticipates the possible outcomes of the US CPI and PPI before the Fed's FOMC meeting tomorrow. Meanwhile, the US 10-year real interest rate continued to inch up slightly to above 1.5% with stable bond yields this week ahead of the significant monetary policy meeting and inflation data. The real yield is the...

Jiren-SphynChannels

Gold Price stays pressured despite downbeat United States Treasury bond yields The price of gold remains low despite the positive outlook of the US bond market, which indicates confidence in the US policymakers' agreement to extend the debt-ceiling until January 2025. The XAU/USD weakness may be due to the opposing views of some policymakers, specifically the...

Jiren-SphynChannels Updated 

TECHNICAL ANALYSIS If GBP/USD climbs above 1.2380, which is the 20-period SMA and the upper limit of the descending channel, and utilizes it as support, it may face temporary resistance at 1.2400 and 1.2420 before aiming for 1.2450, which is the Fibonacci 23.6% retracement of the latest uptrend. If it goes downwards, the first support is at 1.2330, the...

Jiren-SphynChannels Updated 

Technical analysis: The price of gold has dropped below a descending resistance line that is three weeks old and is currently around $1,954. This is the third consecutive week where the price has fallen. Despite the Relative Strength Index (RSI) line performing poorly in the past few days, the bearish signals from the Moving Average Convergence and Divergence...

Jiren-SphynChannels Updated 

Technical analysis The support and resistance levels are performing effectively, and at 1955, a robust resistance zone has been established. With the goal of continuing to decrease to the 192x region, Gold is required to increase slightly to create liquidity. SMA is forming a continuous decline in wave cycle. Update new news situation The US Dollar...

Jiren-SphynChannels Updated 

Predicting continuation of the uptrend EUR/JPY is a forex quote that represents the exchange rate between the Euro and the Japanese Yen. Traders like to borrow the low-yielding Yen to fund carry trades and buy higher-yielding currencies like the Euro during times of optimism. However, during times of market stress, investors tend to avoid carry trades. EUR/JPY...

Jiren-SphynChannels Updated 

The BoC takes a more dovish path The Bank of Canada flagged areas sensitive to rising interest rates like the housing sector. The BoC noted that housing activity has fallen sharply and household spending is falling. Furthermore, in the released statement prior to the Q&A BoC’s Macklem stated that the tightening phase will draw to a close, ‘but not there yet’....

Jiren-SphynChannels Updated 

Gloomy forecast point to ongoing pressure on the Pound The UK economy is facing several challenges such as strikes, unresolved Brexit issues, low productivity, and negative forecasts from the International Monetary Fund. The Bank of England (BOE) has acknowledged these issues, adding to the gloomy outlook. This will likely continue to weaken the Pound for a...

Jiren-SphynChannels

Stagflation to take USD even higher The demand for goods and services across the world is facing challenges due to inflation and high input prices. This is impacting the purchasing power of consumers and profits of companies. However, the energy sector is less affected. The global monetary conditions are also tightening, which contributes to the current...

Jiren-SphynChannels

The Return of the Sellers Over the past two decades, the US Dollar's market share has declined from 71 percent to 59 percent, and it may continue to reduce further in the future. This has a negative impact on the United States since global currency usage is a zero-sum game. When other currencies like Yuan, real, or Rupee are used in global trade, the US Dollar...

Jiren-SphynChannels

US recession risks to keep Gold well in demand It seems gold has little to fear from weakening or strengthening risk appetite as the sharp rise in the market-implied probability of a US recession in the next year should keep bullion well in demand.

Jiren-SphynChannels

Macro headwinds to keep pressure on Copper prices Copper's price outlook is influenced by recession fears, China's Covid-19 restrictions, and the Fed's interest rate hikes. These factors will continue to impact copper's short-term price outlook, but its price support should remain above $7,500/t until 2023 due to tightening supply. We predict that copper prices...