Weak U.S. Stocks Support Gold Prices, Market Expectations For Inflation Remain High - Doo Prime News
Doo Prime News > Analysis > Market Insight > Weak U.S. Stocks Support Gold Prices, Market Expectations For Inflation Remain High

1. Forex Market Insight  


The euro was down by 0.26% against the dollar at 1.1284 as markets expect the Fed to tighten policy sooner than the dovish European Central Bank, with the euro seen as vulnerable to a U.S. rate hike.

Technical Analysis:

(EUR/USD 1-hour chart) 

Execution Insight: 

Today, pay attention to the 1.1267-line of support. If the euro runs stably above the 1.126- line, focus on the strength of the euro’s rebound. Then, pay attention to the suppression of the top 1.1315-line. If the euro’s strength drops below the 1.1267-line, then pay attention to the support strength two positions of 1.1250 and 1.1198.

GBP Intraday Trend Analysis 

Fundamental Analysis: 

The British pound fell by 0.42% to 1.3217 against the dollar after Prime Minister Johnson said on Sunday, 12th December 2021 that the U.K. will see a “wave” of Omicron infections. On Monday, 13th December 2021, he said there had been at least one death in the U.K. from the new variant of the infection.

Technical Analysis: 

(GBP/USD 1-hour chart) 

Execution Insight: 

The pound today is mainly focused on the 1.3302-line. If the pound runs below the 1.3302-line, pay attention to the support at the 1.3186 and 1.3104 positions. If the pound strength rises above the 1.3302 line, then pay attention to the 1.3409-line of suppression.

2. Precious Metals Market Insight



Fundamental Analysis: 

Gold prices rose slightly yesterday, mainly due to high market expectations for inflation, boosting the appeal of inflation-resistant gold.

In addition, the weakness in U.S. bond yields and the U.S. stocks also gave more support to gold prices, although the stronger dollar limited its gains.

Intraday focus on the U.S. November PPI, the current forecast will reach 9.2%, the previous value of 8.6%, the data is expected to bring more support to the gold price.

Technical Analysis:

(Gold 1-hour chart) 

Trading Strategies: 

Gold pays attention to the 1793-line today. If the price of gold runs below the 1793-line, then pay attention to the support of the 1784 and 1773 positions. If the gold price rebounds above the 1793-line again, it will open up a further room for rebound. At that time, pay attention to the suppressive strength in two positions of 1804 and 1812.

3. Commodities Market Insight 

WTI Crude Oil 

Fundamental Analysis: 

Oil prices fell by more than 1% yesterday as new doubts arose about the vaccine’s effectiveness against the Omicron variant.

With traders weighing the impact of the Omicron strain and the World Health Organization (WHO) saying that the Omicron variant, which has spread in more than 60 countries, poses a “very high” global risk and that there is some evidence that it has breached vaccine protection. It has breached vaccine protection, increasing concerns.

The focus during the day will be on the annual rate of PPI in November and the IEA’s monthly crude oil market report; the change in API crude oil inventories for the week ending December 10 will be released at 5:30 on Wednesday.

Technical Analysis:

(Crude oil 1-hour chart) 

Trading Strategies: 

Today, oil prices are still paying attention to the 72.77-line. If the oil price runs below the 72.77-line, maintain the bearish trend. Then, pay attention to the support at 70.49 and 68.57 in turn. If the oil price breaks through 73.52, it will open up further upside. At that time, focus on the suppression of 75.04.

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