European Open: Can gold snap its 4-day losing streak?

Gold trading
Matt Simpson financial analyst
By :  ,  Market Analyst

Asian Indices:

  • Australia's ASX 200 index rose by 42 points (0.59%) and currently trades at 7,181.30
  • Japan's Nikkei 225 index has risen by 187.62 points (0.67%) and currently trades at 28,132.41
  • Hong Kong's Hang Seng index has fallen by -156.69 points (-0.89%) and currently trades at 17,499.22
  • China's A50 Index has risen by 103.23 points (0.85%) and currently trades at 12,234.71

 

UK and Europe:

  • UK's FTSE 100 futures are currently up 23 points (0.31%), the cash market is currently estimated to open at 7,399.85
  • Euro STOXX 50 futures are currently up 6 points (0.15%), the cash market is currently estimated to open at 3,915.28
  • Germany's DAX futures are currently up 13 points (0.09%), the cash market is currently estimated to open at 14,392.93

 

US Futures:

  • DJI futures are currently down -11 points (-0.03%)
  • S&P 500 futures are currently down 0 points (0%)
  • Nasdaq 100 futures are currently up 0.25 points (0.01%)

 

20221122futuresFX

 

  • RBA Governor Dr Philip Lowe delivers a speech at 07:00 GMT titled “Price Stability, the Supply Side and Prosperity” which suggests it will likely contain comments on monetary policy and inflation.
  • Mass COVID testing across Chinese cities resumed and Beijing announced the closure of parks and museums as cases continued to rise.
  • Retail sales for Mexico and Canada are ay 12:00 and 13:30 respectively.
  • Several central bank members speak today, with the FOMC’s Mester at 16:00, BOC Deputy Governor Roger to speak at 17:30, then back to FOMC member George and Bullard.
  • In the early hours of 01:00 tomorrow the RBNZ are expected to hike by 75bp from 3.5% to 4.25% and upgrade their projected OCR< given high levels of inflation and inflation expectations.

 

Gold 4-hour chart:

20221122goldFX

Gold prices have retreated for four consecutive days, which itself is a reason to suspect mean reversion could be just around the corner. But the pullback has also found support around the September 12th high and weekly S1 pivot. If prices can hold above yesterday’s low then the bias is for a retracement higher towards 1760, near the weekly pivot point and last week’s VPOC (volume point of control). Whether prices can continue higher above 1760 is likely to be whether the FOMC minutes are surprisingly dovish, so equally open to the potential of a lower high forming below or around 1760 – after an initial bounce from current levels.

 

 

Economic events up next (Times in GMT)

20221122calendarGMT

 

 

 

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Related tags: Trade Ideas Gold XAU/USD

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