Gold Fails to Break $1,300 as Risk Appetite Returns
user

Market Overview

Gold Fails to Break $1,300 as Risk Appetite Returns to the Financial Markets

Posted on .

Gold Fails to Break $1,300 as Risk Appetite Returns to the Financial Markets

Introduction

This article was posted on Tuesday, 11:02, UTC.

Gold prices were knocked from more than two-month highs on Tuesday, as risk appetite returned to the financial markets.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

Gold Rally Fails to Eclipse $1,300

A familiar narrative has befallen gold this week, as the metal appears poised to complete a triple-top formation extending all the way back to April. After gaining roughly 5% over the past month, prices failed to overtake the all-important $1,300.00 level. Bullion declined 0.3% on Monday and is down another 0.7% during Tuesday’s Asian session.

December gold, the most actively traded futures contract, traded in the low $1,280.00 range overnight. The technical picture remains largely positive, although the fundamental outlook could undermine bullion’s resilience.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

If the current narrative plays out like it has done multiple times this year, the yellow metal is likely heading lower over the short term. The extent of the downfall will depend on several factors, including the health of the U.S. dollar and performance of several key economic indicators.

The U.S. dollar index (DXY) has stabilized recently, but continues to trade near 15-month lows. The DXY basket is down 8.5% year-to-date.

Risk Appetite Returns as North Korea Fears Blow Over

Global equity markets surged on Monday after senior White House officials quelled fears of imminent war with North Korea.

On Wall Street, the S&P 500 Index climbed 1% to close at 2,465.84. Ten of 11 sectors contributed to the rally, with financials and technology shares leading the way. The Dow Jones Industrial Average rose 0.6% to 21,993.71. The tech-laden Nasdaq Composite Index spiked 1.3% to 6,340.23.

A measure of implied volatility known as the CBOE VIX plunged more than 20%, partially offsetting last week’s massive jump. The so-called “fear index” tracks inversely with the S&P 500 Index at least three-quarters of the time.

European stocks also rose sharply, rebounding from five-month lows. The Stoxx Europe 600 Index rallied 1.1% after registering a 2.7% loss last week. National bourses were also higher, with Germany’s DAX and France’s CAC 40 adding 1.3% and 1.2%, respectively.

Data Deluge, Monetary Policy In Focus

The economic calendar heats up on Tuesday and for the remainder of the week with headline data and policy releases. Retail sales and industrial production will headline the U.S. calendar on Tuesday and Thursday, respectively. The Federal Open Market Committee (FOMC) meeting minutes will also provide food for thought on Wednesday.

The Fed is keeping interest rates steady for the short term as policymakers devise a strategy for winding down their $4.5 trillion balance sheet. The FOMC minutes may provide clues about the pace and timing of those efforts.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Sam Bourgi

Sam Bourgi

Sam Bourgi is Contributing Writer to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.

There are no comments.

View Comments (0) ...
Navigation
The team:
Dmitriy Lavrov
Analyst
Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
Jonas Borchgrevink
Founder
Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
Mate Csar
Analyst
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
Mati Greenspan
Analyst
Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
Rakesh Upadhyay
Analyst
Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
Pamela Meropiali
Account Manager
Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
Joseph Young
Journalist
Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
NEO has been crushing it lately, outpacing Litecoin and Dash…