|Day's range||1,273.00 - 1,279.70|
Investing.com - The guessing game begins. With exactly two weeks to the expiration of the U.S. sanction waivers on Iran, oil bulls are holding tight to see which way President Donald Trump will lean.
If buyers take control then look for a test of a pair of uptrending Gann angles at $64.15 and $64.17. Overtaking $64.17 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with $64.72 the next major target.
Based on the early price action and the current price at $1277.60, the direction of the June Comex gold market the rest of the session is likely to be determined by trader reaction to yesterday’s close at $1276.80.
BENGALURU/MUMBAI (Reuters) - Gold premiums in top consumer China jumped to their highest in more than two years, as a drop in global prices and strengthening yuan encouraged purchases amid optimism about the state of the economy. Chinese premiums climbed to about $20 an ounce over global benchmark prices this week, a level last seen in March 2017. Premiums of about $13-$15 were charged last week.
Thin-trading conditions are contributing to today’s early two-sided trade. This price action is likely to continue throughout the session. Throughout the week, gold has been pressured by improving economic data in the U.S. and China. With the emergence of weaker data from the Euro Zone, traders now have to make position adjustments to reflect this.
This time, the CAD Retails numbers are expected to report positive data to the prior negative numbers. Loonie continued to remain subdued within the range of 1.3282/1.3402 levels since April 1.
The markets could experience choppy, two-sided trading today due to thin, pre-holiday volume, and renewed concerns over future demand due to the weak Euro Zone PMI data. Earlier in the week some of those concerns were offset by stronger-than-expected economic data from China.
Crude oil markets continue to press resistance overhead, but at this point it seems as if we aren’t quite ready to make a significant move. With that being the case, it’s very likely that we will continue to chop around with an upward bias.
Based on the early price action, the direction of the June Comex gold market the rest of the session is likely to be determined by trader reaction to the steep downtrending Gann angle at $1274.70.
Based on the early price action and the current price at 26398, the direction of the June E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the uptrending Gann angle at 26465. The market is also threatening to turn lower for the holiday-shortened week.
Based on the early price action and the current price at 1.1303, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1294.
The direction for gold today will likely be influenced by the direction of the U.S. Dollar, Treasury yields and U.S. equity prices. The U.S. Dollar is being primarily driven by the movement in the Euro. Treasury yields will be driven by expectations of continuing U.S. economic growth. Equities are being driven by earnings.
Almost all data released from China today managed to beat estimates, including industrial production and retail sales in March, which jumped 8.5% and 8.7%, respectively.
Bitcoin decreased by almost 2% in the last 24 hours and is trading at around $5100. The benchmark cryptocurrency attempted to break through $5200, but again faced sales pressure, and as the price dropped, trading volumes grew.
Based on today’s wide trading range, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to 1.1317 and 1.1284.
Keep an eye on Treasury yields and the stock market today. Yields have been coming back strong as investors have cut the odds of a rate cut and recession. Another spike to the upside in yields could drive gold sharply lower.
In Japan, stocks may have been supported by the start of trade talks with the United States. BOJ’s Kuroda also told CNBC that there is room for reducing long-term and short-term interest rates.
* The Toronto Stock Exchange's S&P/TSX rose 34.93 points, or 0.21 percent, to 16,515.46. * Leading the index were Lundin Mining Corp, up 8.1 percent, Osisko Gold Royalties Ltd, up 4 percent, and Endeavour Mining Corp, higher by 3.3 percent. * Lagging shares were Aphria Inc, down 14.2 percent, Cronos Group Inc, down 6.6 percent, and Ero Copper Corp, lower by 5.3 percent. * On the TSX 120 issues rose and 116 fell as a 1-to-1 ratio favored advancers. There were 15 new highs and no new lows, with total volume of 194.6 million shares. ...