|Day's range||1,272.10 - 1,278.60|
Gold futures have lost 2.3% so far in June, while the dollar, as gauged by the ICE U.S. Dollar (IFUS:DX-Y.NYB), a measure of the buck against a half-dozen currencies, has advanced 1.2% in June, according to FactSet data. On Tuesday, markets experienced a flight-to-safety trading after President Donald Trump asked U.S. Trade Representative Robert Lighthizer late Monday to identify $200 billion more in Chinese products that could be subject to tariffs of 10%, ratcheting up concerns that a trade war may erupt, roiling global economies.
The Gold has made a big drop towards the W L3 level where it found a support. However the MACD is showing a regular divergence at the bottom. We can also see a descending trend line that marks a potential bullish breakout. The divergence will become valid if the Gold breaks and closes above the red descending trend line ( around 1275) and that could push the pair up. However a close below 1270 could make a divergence invalid and the Gold should drop towards 1266 and 1260.
Silver markets got hammer during the day on Tuesday, breaking through significant support in the form of the rectangle that had been so noisy in the early part of the month of June. This is a continuation of negative pressure, but as I record this video we are starting to see a bit of a bounce back.
Crude oil markets fell again on Tuesday, as we continue to see a lot of volatile moves in this sector ahead of the OPEC meetings this week. By the end of the week, we should have an idea as to what OPEC is going to do with production cuts, which at this point a lot of people think that they will shrink the size of cuts, and thereby add supplied to the global environment.
Gold markets fell again during the day on Tuesday, breaking through significant support at the $1275 level. This is an area that has offered support more than once, so breaking down through there is of course a negative sign. However, one has to believe that sooner or later value hunters will return.
Based on the early price action, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the long-term uptrending Gann angle at .7398. The AUD/USD is down 10 session from its last main top so it may be ripe for a short-covering rally.
Goldcorp (GG) has operations across Canada, the United States, Mexico, Central America, and South America. You can learn more about Goldcorp in Market Realist’s An Investors’ Guide to Goldcorp. Currently, 20 Wall Street analysts are tracking GG stock, of which 70% recommend “buys,” 25% recommend “holds,” and 5% recommend “sells.” Its current target price of $18.0 implies a potential upside of 26% based on its current market price.
Eldorado Gold (EGO) is one of the few gold stocks that have seen rapidly deteriorating sentiments from analysts in the last year. Currently, only 15% of the 13 Wall Street analysts covering it rate it as a “buy.” This stands in sharp contrast to the ~78% “buy” ratings it had almost a year ago. Eldorado Gold stock suffered a great deal in 2017 due to its standoff with the Greek government and some technical issues at its mines in Turkey.
Among the major gold mining and gold streaming companies, Wheaton Precious Metals (WPM), the world’s largest precious metals streaming company, has received the highest percentage of “buy” recommendations at 92.0%, and this level hasn’t changed much over the past year. Wheaton Precious Metals, previously known as Silver Wheaton (SLW), is a royalty and streaming company. In fact, they provide up-front funds to precious metals mining companies in exchange for the right to buy their product streams at lower prices in the future.
Five Gold Stocks Analysts Love—and Five They Don'tGold mining companies Recently, gold prices (GLD) have resumed their downward trend, mainly due to the US dollar’s strength. The SPDR Gold Shares ETF (GLD) has fallen 0.2% as of June 14. The VanEck Vectors Gold Miners ETF (GDX) has had a worse showing at -2.5% YTD (year-to-date). Among senior miners, only Goldcorp (GG) has gained in the double digits, rising 12.1% YTD. Newmont Mining (NEM) is the only other senior gold miner to have gained positively YTD in 2018. Barrick Gold (ABX) and Kinross Gold (KGC), on the other hand, have fallen 9. ...
Investing.com - Oil prices declined on Tuesday, as energy investors weighed potential outcomes for a meeting of major crude producers later this week, while keeping on eye on the latest developments in the ongoing U.S.-China trade conflict.
Investing.com – Oil prices fell on Tuesday on reports that Organization of Petroleum Exporting Countries (OPEC) members are considering an agreement that delivers 300,000 to 600,000 barrels a day of additional supply to global markets over the next few months, according to reports that cited people briefed on the talks.
Investing.com – Gold prices gained on Tuesday as intensifying U.S.-China trade tensions fuelled investor appetite for safe-haven gold. A softer dollar was also cited as supportive.
The Gold markets have gone back and forth during the trading session on Monday as traders came back from the weekend. It appears that we are in a bit of a holding pattern, as people continue to pay attention to the escalating trade tariffs between the United States and China.
The next major move is likely to be determined by the new forecast for the first week in July. This forecast will determine whether August natural gas holds $2.885 to $2.848, or breaks through it.
The Australian dollar has been somewhat sideways to open the week on Monday, as we continue to hug just below the 0.75 level. That of course is a large come around, psychologically significant figure, and of course an area that the market would have been paying attention to.
We’re looking for the volatility to continue on Tuesday as investors are likely to continue to react to signs of a splintered OPEC. While most members of the cartel are likely to follow the lead of Saudi Arabia, there are indications that members Iran, Iraq and Venezuela are preparing to veto any move to increase production.
Increased safe haven demand is helping to boost gold prices early Tuesday. The buying is being driven by a drop in U.S. Treasury yields and U.S. equity futures in reaction to President Trump’s threat of new tariffs on China.
Lingering concerns over the US-China trade dispute could continue to pressure the AUD/USD and NZD/USD or at the least limit their upside potential if there is a short-covering rally. The fact that both Forex pairs haven’t “crashed” suggests that investors feel that some solution will be reached as long as both parties are still at the negotiation table.
Investing.com – WTI crude oil prices settled higher Monday as traders cheered a report suggesting the Organization of the Petroleum Exporting Countries was considering an output hike well below levels many had initially feared.
Stock market bargain-hunters came in to stop the price slide shortly after the regular session opening on the hopes that the two major economic powers would reach a settlement to prevent further tariffs.
Gold prices moved lower and are consolidating on Monday after tumbling on Friday as the dollar gained traction. The ECB and the Federal Reserve met last week and are on diverging paths as the Fed continues to raise rates and normalize. Higher U.S. interest rates are making the dollar more attractive and gold prices more expensive in other currencies. As long as the dollar continues to make headway, gold prices will have a difficult time gaining ground. The ECB on the other hand, kept rates unchanged but discussed the phasing out of their quantitative easing. QE will be reduced by half in September and will phase out completely as of December 2018. Just because QE will be terminated does not mean that the ECB will begin to increase interest rates.
Is the trade war on? Following China’s response to the U.S tariffs on China exports to the U.S, it could get ugly, with Trump’s first tweet of the week likely to have a material bearing of risk sentiment through the week.