The gold price surged to a four-week high as the investigation over potential links between President Trump and Russia deepened, eroding Mr Trump’s image and raising concerns of political uncertainty in the White House.
The gold price has broken out above the 50% Fibonacci retracement level at $1,251, with its next resistance level found at the $1,261 (61.8%) area.
Similarly, the silver price has rebounded to the $16.50 area, with immediate support and resistance levels at $16.18 and $16.78 respectively.
The crude oil price tumbled nearly 3% last Friday, due to rising expectations that the OPEC and non-OPEC members’ meeting on Monday may reach no deal on Libyan and Nigerian production cuts. The OPEC Secretary said on Sunday that a rebalancing of the oil market is progressing more slowly than expected, but it will speed up in the second half of the year.
The US dollar tumbled to a 13-month low, sending EUR/USD to its highest level in nearly two years, at the 1.1670 area. Tonight’s eurozone PMI data would give the euro another excuse to surge, should the data beat market expectations.
Currently, the market sees manufacturing and service PMI readings at 57.2 and 55.6 respectively. USD/JPY also sank to the 110.89 area, testing the 61.8% Fibonacci retracement level around here.
US equities remained resilient against political headwinds as strong earnings continued to underpin stock market performances. This week investors will be waiting for earnings from Google, AT&T, Facebook, Intel, Amazon, Shell and Exxon
Mobile to paint a clearer picture of future direction.
Gold - Cash
- 10-Day Simple Moving Average is sloped upwards
- SuperTrend (10,1.5) also sloped upwards
- Broken out above the 50% Fibonacci retracement level, with the next resistance level at $1,261 area (61.8% Fibonacci level)
- Momentum indicator DMI has entered into a bullish channel
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