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Strong Rise In Dollar And U.S. Stocks Limited Gold’s Rally

1. Forex Market Insight  


U.S. Treasury yields fell on Thursday, 4th November 2021, and the yield curve steepened as markets unraveled expectations that the Federal Reserve will accelerate interest rate hikes.

The day before, the Fed hinted that it is not in a hurry to raise interest rates. Meanwhile, the Bank of England decided to hold off on raising interest rates, causing some of the European bond yields to fall sharply, also helped to push up the price of U.S. bonds.

The market is lifting these expectations of sharp rate hikes early, so the market is starting to realize that, at least from Powell’s speech, the Fed is very serious about remaining patient and allowing inflation to be moderately above target.

Technical Analysis: 

(EUR/USD 1-hour chart) 

Execution Insight: 

Today, pay attention to the 1.1535-line. If the euro runs steadily above the 1.1535-line, then pay attention to the suppression of the two positions 1.1583 and 1.1622 in turn. If the strength of the euro drops below the 1.11535-line, it will open up a further downside space. At that time, pay attention to the support of the 1.1501-line.

GBP Intraday Trend Analysis 

Fundamental Analysis: 

The Bank of England unexpectedly kept interest rates unchanged yesterday, placing more importance on dealing with the slowing economic growth than inflation, but the central bank’s credibility has been called into question as a result. Thereby, causing the pound to plummet against the dollar and the dollar index to rise to a high since 13th October 2021.

Technical Analysis: 

(GBP/USD 1-hour chart) 

Execution Insight: 

The pound is mainly focused on the 1.3605-line today. If the pound runs below the 1.3605-line, it will still maintain the bearish trend. At that time, the bottom will pay attention to the support of 1.3409. If the pound rises above the 1.3605-line, then pay attention to the suppression of the 1.3669-line.

2. Precious Metals Market Insight



Fundamental Analysis: 

Yesterday, gold prices soared by more than 1%. On the one hand, the U.S. bond yields fell sharply.

During this interval, the United States and the United Kingdom have said not to raise interest rates, and the loose monetary policy will continue. However, the strong rise in the dollar and U.S. stocks limited the rally in gold prices.

Intraday focus on the October non-farm payrolls report, the market is expected to be better for this report, may be negative for gold prices.

Technical Analysis:

(Gold 1-hour chart) 

Trading Strategies: 

Today, the gold pays attention to the 1810-line. If the price of gold runs stably below the 1810-line, then pay attention to the support of the 1778 and 1768 positions. If the price of gold falls below the 1810-line, it will open up a further upside space. At that time, pay attention to the suppression of the 1820-line.

3. Commodities Market Insight 

WTI Crude Oil 

Fundamental Analysis: 

Oil prices rose by more than 3% yesterday, 4th November 2021. However, the gold then gave up its gains, and fell by more than 3% to a near one-month low of $78.25 per barrel. As OPEC+ maintained its established pace of production increases, the defying calls from the U.S. to increase production has led the market to speculation that the U.S. may use its strategic reserves.

Technical Analysis:

(Crude oil 1-hour chart) 

Trading Strategies: 

Today, oil prices pay attention to the 78.92-line. If the oil price breaks above the 78.92-line, then pay attention to the suppression at the 80 and 81.07 positions in turn. If the oil price runs stably below the 78.92-line, it will open up a further downside space. At that time, pay attention to support strength in two positions at 76.89 and 75.69.

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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