EDITOR'S NOTE: The gold market is currently taking a breather just points away from the summit where it appears poised to enter into new record-high territory. The trading volume leading up to the current price level is high; a bullish sign indicating some potentially strong buying pressure. The slight pullback leading gold lower, on the other hand, finds very little support in trading volume, potentially indicating some profit-taking but with very little evidence of serious bearish activity. That’s the technical picture thus far. The fundamental picture, on the other hand, points to several potential tailwinds. Rajan Dhall, writing for Kitco, mentions them in the article below, listing the factors and events that investors should keep a close eye on. As gold approaches the crest, soon to challenge its record high, let’s bear in mind that this seemingly monumental surge might only be the opening stages of a much larger supercycle.
Gold (-0.61%) has moved marginally lower this morning after recovering from its lows to close 0.28% higher on Thursday. The yellow metal is trading at $1985/oz ahead of the European open. Silver is half a percent lower trading at $25.75/oz. In the rest of the commodities complex. copper is 0.58% higher and spot WTI has moved 1.50% in the black.
Risk markets were mixed overnight. The Nikkei 225 (-2.05%) and ASX (-0.94%) traded lower while the Shanghai Composite rose 0.41% due to comments from Chinese leaders. Futures in Europe are indicating there could be a positive cash open.
In FX markets, there was not too much movement overnight. The biggest mover was USD/JPY which rose 0.53%. extending above the previous daily wave high. In the crypto space, BTC/USD fell half a percent to trade at $39,221.
News from overnight:
Ukraine says Russia has attacked another nuclear facility.
Reports some Russian forces are pulling back a little from Their approach to Kyiv.
Japan will freeze the assets of three Belarusian banks.
London Metal Exchange will not restart the trading of nickel contracts on Friday.
China Premier LI: Fiscal and monetary policies will support employment. He also added it is difficult to maintain medium- to high-speed growth for large economy.
Reports of Russian airstrikes in the far west of Ukraine - Targeting supply lines.
Li Keqiang says this is his final year as China's Prime Minister.
China says that it has faced continuous cyber-attacks from the U.S.
BoJ official says Japan's economic and price conditions don't allow withdrawal of stimulus.
RBA Governor Lowe says it'd be wise for borrowers to plan for an increase in rates.
U.S. Treasury Secretary Yellen says she expects a further rise in US inflation.
UK January monthly GDP +0.8% vs +0.2% m/m expected.
Germany February final CPI +5.1% vs +5.1% y/y prelim.
Looking ahead to the rest of the session highlights include U.S. President Biden's speech at 1515 GMT, Canadian jobs, and any more Ukraine/Russia updates.