Bullet Report: Gold Prices Melt as Yellen “Confirms” Rate Hike

Posted On 18 Nov 2016

Tag: Gold

Currencies: The Dollar continued to surge overnight with new highs across the board. Against the JPY, the USD reached 110.91 its highest since 31th May. Against the EUR, The USD traded at 1.0580, the lowest level of EURUSD since late December last year. Fed fund futures continued to price in over 90% chance of a December Fed hike. More importantly, futures are now pricing in roughly 50% chance of another hike by June, up from prior day’s 45%. The Chinese yuan has weakened considerably over the past few days against the UD, after the People’s Bank of China set a weaker midpoint for the 10th consecutive day in the face of a firm US dollar. USD/CNY was trading at 6.8750, remaining near eight-year highs. AUDUSD is also trading at 6 month lows of 0.7376.

Stocks: Overnight, U.S. stocks were higher after the close on Thursday, as gains in the Consumer Services, Financials and Technology sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average added 0.10%, while the S&P 500 index added 0.39%, and the NASDAQ Composite index gained 0.62%. The Nikkei 225 rose 0.81%, while the S&P/ASX 200 rose 0.17%

Oil and Gold: Gold prices melted as a result of the Dollar strength. As you know, GOLD is inversely correlated with USD so each time the Dollar strengthens, Gold drops. The yellow metal posted lows of $1202 just now. $1200 is a critical support level which if broken, further slide cannot be excluded. Notably, GOLD has lost $140 in value ever since Trump was elected. Brent crude oil traded around $46/bbl as investors saw an increasing chance that OPEC would reach an agreement on production cuts. Saudi Arabia’s oil minister Khalid A. Al-Falih said that he’s optimistic a deal would be concluded in Vienna. He also stressed the output ceiling for OPEC would be set at 32.5 million barrels a day

The post Bullet Report: Gold Prices Melt as Yellen “Confirms” Rate Hike appeared first on Forex.Info.

Source:: Bullet Report: Gold Prices Melt as Yellen “Confirms” Rate Hike

About the Author

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. [space height="20"] Trade 300+ markets including currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! [space height="20"] Welcome to the exciting world of trading. Welcome to easyMarkets.