Sep 29, 2022 10:00 AM +05:00
VOT Research Desk
Key Insights and Analysis
As markets recalibrate, commodities and associated currencies are moving markets, and APAC equities are following suit. Gold has managed to maintain overnight gains. Will they raise the XAU/USD rate?
The chaos caused by the Bank of England’s decision to buy long-dated Gilts to intervene in the UK bond market supported the gold price.
At the time of writing, it was trading above US$ 1,650, despite a slight decline in Asia today. The precious metal was supported by a falling yield and a weaker US dollar.
As a result of the crushing of Gilt rates, government bond yields have decreased everywhere, and APAC equity markets have followed Wall Street’s lead and increased.
Japan is the only exception, where the Bank of Japan continues to control the yield curve (YCC).Around 144.50, the USD/JPY remains cautious. Today, Taiwan, Korea, and China’s central banks intervened in some way.
The market is reevaluating the true impact of the BoE’s action, and as a result, the US dollar has recovered some of its losses against all major currencies since the New York close.
The Bank of England is in a position where they want to keep inflation under control and maintain financial stability at the same time.
The first involves raising interest rates at the short end of the curve, whereas the second is actually lowering borrowing costs at the back end.
The WTI futures contract is close to US$ 82 bbl and the Brent contract is close to US$ 89 bbl, respectively, indicating that central banks will be active in several markets in the near future. Crude oil is marginally softer heading into Europe.
Today, the US will receive data on employment, GDP, inflation, and personal consumption, while the European Central Bank (ECB) will present a number of speakers.GDP figures will also be sent to Canada.
Despite yesterday’s 1.91 percent gain, gold remains in a channel of declining trend. In the 1677–1688 region, a group of breakpoints and recent peaks may serve as a resistance zone.
A Fibonacci extension level at 1602 or the descending trend line, which is currently dissecting at 1540, could serve as downside support.
Technical Indicators
Time : 05:11:42
|
Name |
Value |
Action |
|
RSI(14) |
48.674 |
Neutral |
|
STOCH(9,6) |
26.859 |
Sell |
|
STOCHRSI(14) |
10.543 |
Oversold |
|
MACD(12,26) |
1.710 |
Buy |
|
ADX(14) |
50.842 |
Sell |
|
Williams %R |
-76.923 |
Sell |
|
Name |
Value |
Action |
|
CCI(14) |
-113.2846 |
Sell |
|
ATR(14) |
3.8286 |
Less Volatility |
|
Highs/Lows(14) |
-5.0286 |
Sell |
|
Ultimate Oscillator |
44.541 |
Sell |
|
ROC |
-0.928 |
Sell |
|
Bull/Bear Power(13) |
-6.8321 |
Sell |
|
Buy:1 |
Sell:8 |
Neutral:1 |
Indic |
