Gold breaks out after US CPI data

“The first one gets the oyster, the second gets the shell.” – Andrew Carnegie

 

 

HEADLINES

 

 

 

• Falling yields spur a dollar sell-off
• USD/JPY, contained above 113.00, bounces up to 113.50 area
• Gold jumps to highest levels in nearly a month, aiming to re-take $1,800/oz
• Crude Oil Slips as OPEC Updates Forecasts; Putin Says $100/Bbl "Quite Possible"
• Wall St mostly up on Nasdaq and growth stocks, takes Fed minutes in stride
• Bitcoin Price Prediction: Fidelity Analyst Says BTC Will Hit This Number in 2023
• GBP/USD may plummet to 1.32 if BoE delays tapering – ING

 

 

 

FOREX

 

 

Falling yields spur a dollar sell-off

 

 

The dollar sold-off on Wednesday dragged lower by falling US Treasury yields. The market mood was dismal throughout most of the day, with Asian indexes closing in the red after a mixed Chinese Trade Balance, which posted a surplus off $66.76 billion, much better than anticipated. Exports were sharply up, although imports contracted.

Yields were weaker ever since the day started, but accelerated their slump following the release of US inflation data. The September Consumer Price Index was upwardly revised to 5.4% YoY from a previous estimate of 5.3%,  while the core annual reading was confirmed at 4%.

 

USD/JPY, contained above 113.00, bounces up to 113.50 area

 

The US dollar is regaining some ground against the Japanese yen on Wednesday’s US trading session. The pair’s reversal from three-year highs at 113.80 has found support at 113.25. The Japanese yen appreciated earlier on Wednesday, supported by a somewhat weaker dollar, on the back of a flattening US yield curve. The 10-year bond yield has dropped to 1.57% after having peaked at 1.61 on Tuesday, while the 2-year yield has surged to 18-month highs at 0.36%.

 

 

COMMODITIES

 

 

Gold jumps to highest levels in nearly a month, aiming to re-take $1,800/oz

 

Gold prices rise to the highest levels in nearly a month, dating back to September 16, up 1.98% and approaching the $1,800/oz handle as CPI data comes in higher than anticipated. With inflation concerns swirling in the market, investors are looking to the precious metals market for protection. Gold is not the only inflation hedge out there.

 

Crude Oil Slips as OPEC Updates Forecasts; Putin Says $100/Bbl "Quite Possible"

 

Crude oil prices fell below $80 in early trade in the U.S. on Wednesday, after the Organization of Petroleum Exporting Countries shaved its forecasts for global oil consumption this year due to the summer wave of Delta-variant Covid-19.

OPEC kept its forecast for demand next year unchanged at an average of 100.8 million barrels a day. That’s an increase of some 4% from this year’s average and implies that world demand will have more or less returned to its pre-pandemic trajectory by the end of 2022.

 

 

STOCKS

 

 

Wall St mostly up on Nasdaq and growth stocks, takes Fed minutes in stride

 

U.S. stocks were mostly higher on Wednesday in afternoon trading, led by gains in the Nasdaq and shares of big growth names including Amazon.com and Microsoft. The S&P 500 briefly added to gains following the release of minutes from the September Federal Reserve policy meeting.

 

 

CRYPTO

 

 

Bitcoin Price Prediction: Fidelity Analyst Says BTC Will Hit This Number in 2023

 

Jurrien Timmer, the director of global macro at Fidelity Investments, believes that BTC still has plenty of steam left in it. His new prediction calls for Bitcoin to reach a price of $100,000 by the time 2023 gets here. If his prediction holds true, it would mean a massive increase in price for Bitcoin. The crypto is currently trading at $56,894.80, which has Timmer predicting an upside of about 76% for the token.

 

 

ANALYSIS

 

 

GBP/USD may plummet to 1.32 if BoE delays tapering – ING

 

Despite much discussion of stagflation and the UK returning to the candle-powered 1970s, GBP is actually performing quite well. Yet economists at ING are uncertain whether the Bank of England will act as early as the market expects. Therefore, GBP/USD may plunge to the 1.32 level in a couple of months.

 

 

CHART

 

 

Gold – 4 Hour Candlesticks

Source: GKFX Prime Metatrader 4

XAU/USD has broken above resistance at $1780 per oz as well as the 20 DMA, suggesting a new uptrend is in place. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://markets.businessinsider.com/news/stocks/bitcoin-price-prediction-fidelity-analyst-says-btc-will-hit-this-number-in-2023-1030863981
https://seekingalpha.com/news/3752490-gold-jumps-to-highest-levels-in-nearly-a-month-aiming-to-re-take-1800oz?
https://www.investing.com/news/commodities-news/crude-oil-slips-as-opec-updates-forecasts-putin-says-100bbl-quite-possible-2642635
https://www.reuters.com/article/usa-stocks/us-stocks-wall-st-mostly-up-on-nasdaq-and-growth-stocks-takes-fed-minutes-in-stride-idUSL1N2R92JR
https://www.fxstreet.com/news/gbp-usd-may-plummet-to-132-if-boe-delays-tapering-ing-202110131049
https://www.fxstreet.com/news/forex-today-falling-yields-spur-a-dollar-sell-off-202110131947
https://markets.businessinsider.com/news/stocks/european-stocks-close-higher-1030864022
https://www.fxstreet.com/news/usd-jpy-contained-above-11300-bounces-up-to-11350-area-202110131613