Gold Prices Rebounded Sharply, Fed May Accelerate Monetary Policy Tightening - Doo Prime News
Doo Prime News > Analysis > Market Insight > Gold Prices Rebounded Sharply, Fed May Accelerate Monetary Policy Tightening

1. Forex Market Insight  

EUR/USD 

Eurozone inflation hit a record high in November and far exceeded the target. However, the European Central Bank remained indifferent, and still believes that the surge in inflation is temporary and may have peaked.

At the same time, Central bank policymakers are also considering postponing a decision on future bond purchase plans. Through this, the euro was under pressure, closing down by 0.14% to 1.1306 against the dollar.

Technical Analysis: 

(EUR/USD 1-hour chart) 

Execution Insight: 

Today, we still pay attention to the 1.1250-line. If the euro runs steadily above the 1.1250-line, we will see the continuity of the euro’s rebound strength. At that time, we will pay attention to the suppression of the upper 1.1338 and 1.1378 positions. If the euro strength drops below the 1.1250-line, then we will pay attention to the support strength of the two positions at 1.1198 and 1.1183.

GBP Intraday Trend Analysis 

Fundamental Analysis: 

The pound closed lower against the dollar for the second week in a row, down by 0.87%, and set a new low since late December last year to 1.3194. The Omicron variant has led to a decline in the Bank of England’s expected interest rate hike this month.

With the Fed likely to accelerate monetary policy tightening, the strong dollar could be a driver of the pound’s movement ahead of the Bank of England’s Dec. 16 interest rate decision.

Technical Analysis: 

(GBP/USD 1-hour chart) 

Execution Insight: 

The pound is still mainly focused on the 1.3409-line today. If the pound runs below the 1.3409-line, pay attention to the support of the 1.3186-line. If the pound strength rises above the 1.3409-line, then pay attention to the suppression at the 1.3450 and 1.3522 positions.

2. Precious Metals Market Insight

 

Gold 

Fundamental Analysis: 

Gold prices rebounded sharply from a one-month low on Friday, 3rd December 2021, as November’s non-farm payrolls data fell sharply short of expectations and omicron continued to stoke market apprehension.

However, the Fed’s plan to accelerate cuts is expected to remain unchanged, which exerts continued pressure on gold prices.

This week, focus on Friday’s U.S. CPI data. In addition, the Australian Federal Reserve and the Bank of Canada will announce interest rate resolutions one after another this week.

Technical Analysis:

(Gold 1-hour chart) 

Trading Strategies: 

Gold still maintains the bearish trend today. Therefore, today we still pay attention to the line of 1782. If the price of gold runs stably below the line of 1782, then pay attention to the support of the two positions of 1760 and 1751. If the price of gold rebounds to above the line of 1782, then it will open up further room for rebound. At that time, pay attention to the suppression of the 1800 and 1810 positions.

3. Commodities Market Insight 

WTI Crude Oil 

Fundamental Analysis: 

Although the non-farm payrolls data was disappointing last week, the unemployment rate fell and oil prices were boosted by OPEC+’s policy of possibly re-evaluating production increases in the near term if a growing pandemic lockdown curbs demand, it said on Saturday. With light data during the day, keep an eye out for news related to the pandemic and the geopolitical situation in the Middle East.

Technical Analysis:

(Crude oil 1-hour chart) 

Trading Strategies: 

Today, oil prices are paying attention to the 64.01-line. If the oil price runs above the 64.01-line, then pay attention to the suppression of the 68.57 and 69.75 positions in turn. If the oil price drops below 64.01, it will open up further downside space. At that time, pay attention to the strength of support at 61.72 and 60.77 positions.

Disclaimer  
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision. 

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