gold forecast today, the yellow metal continued to gain support

gold forecast today, the yellow metal continued to gain support

gold forecast today, the yellow metal continued to gain support

 


gold forecast today remained somewhat constructive overnight, stabilizing around $1560 level because the alpha-beta brass continues to seek out support from January seasonality, which has attended be a positively active month for gold prices over the past decade

Given that the USD is up since late December and equity markets are at record levels, gold has delayed well

A key question for market participants is the way to position for what happens at the Iowa caucuses (Feb 3) and New Hampshire primaries (Feb 11), and if the markets take a shift to the left before ‘Super-Tuesday,’ how big of a change are they willing to price?? If Sanders lives up to recent polling and does alright in Iowa and New Hampshire, the market will likely sell risk assets and dive into gold

gold forecast today Also, Fox News has indefatigably reported on White House plans for an election year fiscal stimulus. The reported options being discussed include cutting corporate and individual tax rates and increasing a subsidy for lower-income workers with families. It’s never clear cut how the FX and Bond market will react, but with the Fed close to deliver a replacement monetary policy framework, it’s unlikely the Fed would be quick to boost interest rates this point around. within the context of a ate up hold narrative, the likelihood of upper debt and deficits is after all bullish for gold

I’m reading this via Yicai of reports that a drug company has announced it's an antibody for the Wuhan coronavirus, and gold markets are very reactive already unwinding much of this morning’s buys

gold forecast today Equity markets moved into risk-off mode overnight with E-mini S&P futures down 40bp, and Europe is predicted to open an equivalent . Asian weakness was led primarily by the spread of the coronavirus in China, which comes on top of a downgrade of worldwide growth forecasts from the International fund , and Moody’s cut the credit rating of Hong Kong

Fears over the spread of SARS-like viral infection in China are bubbling away within the background since the beginning of the year, but with another fatality reported this morning, it provided enough evidence that the virus is spreading before the Chinese New Year holiday

 gold forecast today Also, Moody’s downgrade of Hong Kong’s rating to Aa3, although the latter is few surprise, the septic combination seems to possess provided enough reasons for those investors trying to find a short-term exit point to go for the hills after seven straight weekly advances

The Coronavirus outbreak can cause a huge demand shock, particularly to the consumption of services, especially travel. So, traders are hedging the tail risk. However, barring further outbreaks, the economic impact might be relatively short-lived

 But having this outbreak occur in an environment of an already subdued global economy thanks to the US-China trade war, investor’s sentiment and reactions are perhaps getting magnified when being viewed through the trade war lens. and that i would caution that generally, the market and particularly the US have looked through these sorts of events within the past. So, we could see aggrieve unwind in Europe and therefore the US markets given the there was possibly a more outsized reaction in Asia as those economies are at the epicenter of the breakout

gold forecast today But on the macro side and something not so quickly sidestepped because it adds a thicker layer of skepticism about the green shoots of the worldwide recovery. The sharp decline in Korea’s 20-day exports to China and therefore the US has raised concerns about the health of the worldwide growth recovery even more so within the wake of the IMF modestly reducing its global growth forecast