Articles
USD/JPY Price Analysis: Rises past 161.00 as Powell stays cautious
401428 July 10, 2024 05:39 FXStreet Market News
-
USD/JPY
edges
higher
eyeing
YTD
high
of
161.95
with
strong
RSI
support. -
Formation
of
‘morning
star’
pattern
suggests
potential
for
further
gains
above
162.00. -
Key
support
at
July
8
low
of
160.26,
with
significant
resistance
at
November
1986
high
of
164.87.
The
USD/JPY
advanced
for
the
second
straight
day
and
climbed
above
the
161.00
figure
on
Tuesday
as
Fed
Chair
Jerome
Powell
remained
cautious
on
rate
cuts
despite
acknowledging
that
the
US
central
bank’s
dual
mandate
risks
are
more
balanced.
The
pair
trades
at
161.29
and
gains
0.28%.
USD/JPY
Price
Analysis:
Technical
outlook
The
USD/JPY
pair’s
uptrend
is
robust,
with
buyers
poised
to
surpass
the
year-to-date
(YTD)
high
of
161.95.
The
bullish
Relative
Strength
Index
(RSI)
indicates
the
momentum
is
in
their
favor.
Despite
hovering
around
overbought
conditions,
the
successive
series
of
higher
highs
and
higher
lows
justifies
another
leg
up.
The
major
snapped
back-to-back
days
of
losses
as
a
doji
emerged
on
Monday,
and
today’s
price
action
completed
a
‘morning
star’
chart
pattern,
hinting
that
a
higher
price
loom.
If
USD/JPY
clears
the
psychological
161.50,
the
next
resistance
would
be
the
YTD
high
ahead
of
162.00.
Additional
gains
lie
overhead
at
the
November
1986
high
of
164.87.
On
the
other
hand,
if
sellers
step
in
and
drag
the
USD/JPY
exchange
rate
below
the
July
8
cycle
low
of
160.26,
that
will
clear
the
path
to
challenging
the
160.00
figure.
USD/JPY
Price
Action
–
Daily
Chart
Japanese
Yen
FAQs
The
Japanese
Yen
(JPY)
is
one
of
the
world’s
most
traded
currencies.
Its
value
is
broadly
determined
by
the
performance
of
the
Japanese
economy,
but
more
specifically
by
the
Bank
of
Japan’s
policy,
the
differential
between
Japanese
and
US
bond
yields,
or
risk
sentiment
among
traders,
among
other
factors.
One
of
the
Bank
of
Japan’s
mandates
is
currency
control,
so
its
moves
are
key
for
the
Yen.
The
BoJ
has
directly
intervened
in
currency
markets
sometimes,
generally
to
lower
the
value
of
the
Yen,
although
it
refrains
from
doing
it
often
due
to
political
concerns
of
its
main
trading
partners.
The
current
BoJ
ultra-loose
monetary
policy,
based
on
massive
stimulus
to
the
economy,
has
caused
the
Yen
to
depreciate
against
its
main
currency
peers.
This
process
has
exacerbated
more
recently
due
to
an
increasing
policy
divergence
between
the
Bank
of
Japan
and
other
main
central
banks,
which
have
opted
to
increase
interest
rates
sharply
to
fight
decades-high
levels
of
inflation.
The
BoJ’s
stance
of
sticking
to
ultra-loose
monetary
policy
has
led
to
a
widening
policy
divergence
with
other
central
banks,
particularly
with
the
US
Federal
Reserve.
This
supports
a
widening
of
the
differential
between
the
10-year
US
and
Japanese
bonds,
which
favors
the
US
Dollar
against
the
Japanese
Yen.
The
Japanese
Yen
is
often
seen
as
a
safe-haven
investment.
This
means
that
in
times
of
market
stress,
investors
are
more
likely
to
put
their
money
in
the
Japanese
currency
due
to
its
supposed
reliability
and
stability.
Turbulent
times
are
likely
to
strengthen
the
Yen’s
value
against
other
currencies
seen
as
more
risky
to
invest
in.
Forexlive Americas FX news wrap 9 Jul: Powell’s testimony keeps easing door open for Sept.
401427 July 10, 2024 05:16 Forexlive Latest News Market News
Fed
Chair
Powell
testified
at
the
U.S.
Senate
today
on
Capitol
Hill
in
the
first
of
two
testimonies
in
front
of
US
lawmakers.
Tomorrow
the
chair
will
be
speaking
to
the
House
of
Representatives.
During
his
testimony
today,
Fed
chair
explicitly
said
that
he
would
not
talk
about
a
change
in
rates
timetable,
although
he
did
signal
that
is
most
likely
to
be
a
decline
in
rates.
He
characterized
the
risk
as
two-way
and
not
just
skewed
toward
inflation.
He
commented
on
a
couple
occasions,
that
the
labor
market
has
cooled
considerably,
but
that
it
remains
strong.
Nevertheless,
he
thought
employment
wasn’t
a
large
contributor
to
inflationary
pressures.
The
chairs
comments
kept
September
cut
on
the
table,
and
the
potential
for
two
cuts
still
an
“odds-on
favorite”
possibility
(with
December
pricing
in
a
75%
chance).
Below
is
a
summary
of
the
major
points
made
by
the
chairman
on
policy,
the
economy,
inflation,
growth,
and
employment
Policy
and
Decision-Making:
-
The
Fed
remains
committed
to
a
2%
inflation
goal
and
maintaining
well-anchored
long-term
inflation
expectations. -
Decisions
on
rate
adjustments
will
be
made
carefully,
considering
incoming
data,
balance
of
risks,
and
appropriate
policy
paths. -
There
are
risks
both
in
reducing
restraint
too
late
or
too
little,
which
could
weaken
the
economy
and
job
market,
and
in
reducing
restraint
too
soon
or
too
much,
which
could
reverse
inflation
progress. -
The
Fed
will
continue
making
decisions
on
a
meeting-by-meeting
basis
and
does
not
plan
a
policy
rate
cut
until
there’s
greater
confidence
that
inflation
is
heading
sustainably
toward
2%.
Economy:
-
The
US
economy
is
expanding
at
a
solid
pace
and
has
performed
exceptionally
compared
to
global
peers. -
GDP
growth
appears
to
have
moderated
in
the
first
half
of
2024.
Inflation:
-
Inflation
remains
above
the
2%
goal,
but
there
has
been
considerable
progress
toward
this
target
with
recent
monthly
readings
showing
modest
further
progress. -
More
good
inflation
data
is
needed
to
build
confidence
in
cutting
rates. -
Restrictive
policy
is
currently
helping
to
put
downward
pressure
on
inflation.
Growth:
-
The
economy
has
been
expanding
solidly,
but
there
are
significant
housing
issues
exacerbated
by
the
pandemic. -
The
Fed’s
tighter
policy
is
impacting
housing
sector
activity,
with
the
best
way
to
address
housing
supply
issues
being
to
reduce
inflation.
Employment:
-
The
labor
market
has
cooled
considerably
but
remains
strong
and
is
now
more
or
less
back
to
pre-pandemic
levels. -
Unemployment
is
still
low
by
historical
standards. -
Wage
increases,
while
still
high,
are
coming
down
to
more
sustainable
levels. -
The
Fed
recognizes
the
labor
market
is
not
a
broad
source
of
inflationary
pressures
now
and
aims
to
balance
risks
in
achieving
employment
and
inflation
goals.
Additional
Points:
-
The
Fed
is
having
discussions
about
potential
changes
to
the
Basel
III
endgame
proposal
and
is
close
to
an
agreement
on
these
changes. -
Immigration
is
seen
as
neutral
on
inflation
in
the
long
run,
but
it
may
have
had
short-term
impacts,
particularly
on
the
housing
market
in
certain
areas.
As
the
dust
settles
in
the
Forex
market,
the
AUD
is
ending
the
day
as
the
strongest
of
the
major
currencies,
while
the
JPY
is
the
weakest.
The
USD
is
ending
mixed/modestly
higher
with
modest
declines
versus
the
CAD,
AUD
and
NZD,
and
gains
vs
the
JPY,
GBP,
and
EUR.
The
USD
was
higher
intraday,
but
the
start
of
the
coupon
auctions
for
the
week
at
the
1
PM
ET
auction,
saw
strong
demand
for
the
3-year
note.
The
auction
not
only
had
a
negative
tail
to
the
WI
of
-0.8
basis
points,
but
had
above
average
bid-to-cover
ratio
as
well.
Demand
was
led
by
strong
domestic
buyers
which
was
a
bit
unusual.
More
recent
auctions
have
been
led
by
the
international
demand
(see
auction
results
by
clicking
here).
The
auction
results
helped
to
ease
some
of
the
supply
concerns
that
may
have
weighed
on
treasury
prices
earlier
today.
Though
yields
are
ending
the
day
higher,
they
are
also
off
their
high
levels
just
prior
to
the
auction.
The
U.S.
Treasury
will
auction
off
10
and
30-year
issues
tomorrow
and
on
Thursday.
At
the
end
of
day,
a
snapshot
of
the
market
shows:
-
2-year
yield
4.626%,
+0.8
basis
points -
5-year
yield
4.244%,
+0.2
basis
points -
10
year
yield
4.297%,
+2.9
basis
points -
30
year
yield
4.490%,
+3.2
basis
points
The
Fed
Chair
Powell
comments
and
auction
results,
did
not
hurt
the
stock
market,
but
the
price
action
was
more
up
and
down.
Nevertheless,
the
broader
indices
(i.e.,
S&P
and
NASDAQ
indices),
did
close
higher
once
again
and
at
record
levels.
For
the
S&P
index,
it
has
now
closed
at
a
new
record
for
four
consecutive
days.
For
the
NASDAQ
index,
it
has
closed
at
a
new
record
for
five
consecutive
days.
-
The
S&P
index
rose
0.07%. -
The
Nasdaq
index
rose
by
0.14%
The
Dow
industrial
average
(of
30
stocks)
traded
down
-198.20
points
at
session
lows,
and
as
high
as
up
147.48
points
at
session
highs.
The
index
is
closing
down
-52.82
points
in
what
was
volatile
up-and-down
trading
for
that
index.
In
other
markets:
-
Crude
oil
fell
for
the
third
consecutive
day.
Strain
down
$0.68
or
-0.83%
at
$81.65 -
Spot
gold
is
trading
up
$5.89
or
0.25%
at
$2363 -
Silver
is
trading
unchanged
at
$30.79 -
Bitcoin
is
trading
higher
at
$57,958.
In
the
new
trading
day,
the
Reserve
Bank
of
New
Zealand
will
announce
its
interest-rate
decision
with
no
change
expected.
Tomorrow
will
be
another
quiet
day
on
the
economic
calendar
with
Fed
chair
Powells
testimony
at
10
AM
ET,
weekly
oil
inventory
data
at
10:30
AM
ET.
The
U.S.
Treasury
will
auction
off
10-year
notes
at
1
PM
ET.
Feds
Bowman
and
Goolsby
will
speak
at
2:30
PM
ET,
and
Feds
Cook
will
speak
later
in
the
evening
at
7:30
PM
ET.
United States API Weekly Crude Oil Stock came in at -1.9M below forecasts (-0.25M) in July 5
401426 July 10, 2024 05:15 FXStreet Market News
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US Dollar ticks up with Powell issuing warnings
401424 July 10, 2024 05:14 FXStreet Market News
-
The
US
Dollar
ticks
up
on
the
back
of
Powell’s
testimony. -
Powell
warns
for
easing
too
soon. -
The
US
Dollar
index
hovers
around
105.00
with
a
small
bounce-off
support.
The
US
Dollar
(USD)
trades
in
the
green,
though
by
just
a
few
decimals
of
a
percentage
on
the
back
of
US
Federal
Reserve
(Fed)
Chairman
Jerome
Powell’s
comments
on
Capitol
Hill.
In
his
semi-annual
testimony,
Powell
confirms
that
disinflation
is
on
track,
though
delivers
warnings
that
easing
too
quick
could
harm
the
process.
No
hints
thus
towards
September,
which
triggers
a
bit
of
US
Dollar
strenght
on
the
back
of
the
comments.
On
the
economic
front,
some
relatively
soft
and
third-party
data
come
out
from
the
National
Federation
of
Independent
Business
(NFIB)
and
the
TechnoMetrica
Institute
of
Policy
and
Politics
(TIPP).
On
the
central
banking
front,
as
already
mentioned,
all
eyes
will
be
on
Fed
Chairman
Powell.
Though
Federal
Reserve
Vice
Chair
for
Supervision
Michael
Barr
and
Federal
Reserve
Governor
Michelle
Bowman
should
not
be
disregarded
for
possibly
delivering
some
good
remarks
during
the
day.
Daily
digest
market
movers:
Powell
sticks
to
the
script
-
The
dust
is
settling
quickly
over
the
French
election
news.
Expect
this
topic
to
fade
into
the
background
completely,
as
it
will
take
a
long
time
before
any
coalition
will
get
formed
in
France. -
The
National
Federation
of
Independent
Business
(NFIB)
already
has
released
its
numbers:
the monthly
Business
Optimism
Index
for
June
jumped
from
90.5
to
91.5,
beating
the
89.5
estimate. -
At
12:55
GMT,
the
weekly
Redbook
Index
for
the
week
ending
July
5
came
out.
The
previous
week,
the
number
came
in
at
5.8%
with
now
6.3%
for
this
week. -
At
14:00
GMT,
the
TechnoMetrica
Institute
of
Policy
and
Politics
(TIPP)
will
release
the
Economic
Optimism
Index
for
July.
The
previous
reading
was
at
40.5,
with
no
forecast
available. -
The
US
Treasury
will
allocate
a
52-week
bill
at
15:30
GMT
and
a
3-year
note
at
17:00
GMT. -
Three
US
Federal
Reserve
speakers
are
making
their
way
to
the
stage
on
Tuesday:-
At
13:15
GMT,
Federal
Reserve
Vice
Chair
for
Supervision
Michael
Barr
gives
a
speech
titled
“Financial
Inclusion:
Past,
Present,
and
Hopes
for
the
Future”
at
the
Financial
Inclusion
Practices
and
Innovation
Conference,
in
Washington,
United
States. -
Fed
Chairman
Jerome
Powell
delivers
“The
Semiannual
Monetary
Policy
Report”
to
the
US
Congress
in
Washington.
His
speech
will
be
published
in
full
just
minutes
before
his
verbal
delivery
at
Congress
begins
near
14:00
GMT. -
At
17:30
GMT,
Federal
Reserve
Governor
Michelle
Bowman
delivers
a
speech
titled
“Promoting
an
Inclusive
Financial
System”
at
the
Financial
Inclusion
Practices
and
Innovation
Conference,
in
Washington.
-
At
-
This
morning,
equity
markets
painted
a
remarkable
picture:
both
Asian
and
US
indices
are
up,
while
Europe
is
lagging,
with
all
major
European
indices
down. -
The
CME
Fedwatch
Tool
is
broadly
backing
a
rate
cut
in
September
despite
recent
comments
from
Fed
officials.
The
odds
now
stand
at
73.6%
for
a
25-basis-point
cut.
A
rate
pause
stands
at
a
22.9%
chance,
while
a
50-basis-point
rate
cut
has
a
slim
3.5%
possibility. -
The
US
10-year
benchmark
rate
trades
at
4.30%,
near
its
weekly
low.
US
Dollar
Index
Technical
Analysis:
Play
and
repeat
The
US
Dollar
Index
(DXY)
is
back
to
square
one
this
week
after
the
small
losses
registered
on
Monday
that
occurred
on
the
back
of
the
French
election
outcome
in
Europe.
With
a
government
formation
now
in
total
gridlock,
markets
can
write
off
France
for
the
coming
months
as
no
risk
anymore
and
quickly
dial
in
on
the
speech
from
US
Federal
Reserve
Chairman
Jerome
Powell.
Expectations
are
that
Powell
will
repeat
that
the
Fed
remains
data-dependent,
more
needs
to
be
done,
though
that
disinflation
is
on
the
right
trajectory
with
rates
remaining
stable,
pushing
forward
any
change
in
monetary
stance
to
the
Jackson
Hole
Symposium
by
late
August.
On
the
upside,
the
55-day
Simple
Moving
Average
(SMA)
at
105.16
remains
the
first
resistance.
Should
that
level
be
reclaimed
again,
105.53
and
105.89
are
the
next
nearby
pivotal
levels.
In
case
Fed
Chairman
Powell
delivers
some
hawkish
comments
before
Congress,
the
red
descending
trend
line
in
the
chart
around
106.23
and
April’s
peak
at
106.52
could
come
into
play.
On
the
downside,
the
risk
of
a
nosedive
move
is
increasing,
with
only
the
double
support
at
104.78,
which
is
the
confluence
of
the
100-day
SMA
and
the
green
ascending
trend
line
from
December
2023,
still
in
place.
Should
that
double
layer
give
way,
the
200-day
SMA
at
104.43
is
the
gatekeeper
that
should
catch
the
DXY
and
avoid
further
declines.
Further
down,
the
correction
could
head
to
104.00
as
an
initial
stage.
US
Dollar
Index:
Daily
Chart
Inflation
FAQs
Inflation
measures
the
rise
in
the
price
of
a
representative
basket
of
goods
and
services.
Headline
inflation
is
usually
expressed
as
a
percentage
change
on
a
month-on-month
(MoM)
and
year-on-year
(YoY)
basis.
Core
inflation
excludes
more
volatile
elements
such
as
food
and
fuel
which
can
fluctuate
because
of
geopolitical
and
seasonal
factors.
Core
inflation
is
the
figure
economists
focus
on
and
is
the
level
targeted
by
central
banks,
which
are
mandated
to
keep
inflation
at
a
manageable
level,
usually
around
2%.
The
Consumer
Price
Index
(CPI)
measures
the
change
in
prices
of
a
basket
of
goods
and
services
over
a
period
of
time.
It
is
usually
expressed
as
a
percentage
change
on
a
month-on-month
(MoM)
and
year-on-year
(YoY)
basis.
Core
CPI
is
the
figure
targeted
by
central
banks
as
it
excludes
volatile
food
and
fuel
inputs.
When
Core
CPI
rises
above
2%
it
usually
results
in
higher
interest
rates
and
vice
versa
when
it
falls
below
2%.
Since
higher
interest
rates
are
positive
for
a
currency,
higher
inflation
usually
results
in
a
stronger
currency.
The
opposite
is
true
when
inflation
falls.
Although
it
may
seem
counter-intuitive,
high
inflation
in
a
country
pushes
up
the
value
of
its
currency
and
vice
versa
for
lower
inflation.
This
is
because
the
central
bank
will
normally
raise
interest
rates
to
combat
the
higher
inflation,
which
attract
more
global
capital
inflows
from
investors
looking
for
a
lucrative
place
to
park
their
money.
Formerly,
Gold
was
the
asset
investors
turned
to
in
times
of
high
inflation
because
it
preserved
its
value,
and
whilst
investors
will
often
still
buy
Gold
for
its
safe-haven
properties
in
times
of
extreme
market
turmoil,
this
is
not
the
case
most
of
the
time.
This
is
because
when
inflation
is
high,
central
banks
will
put
up
interest
rates
to
combat
it.
Higher
interest
rates
are
negative
for
Gold
because
they
increase
the
opportunity-cost
of
holding
Gold
vis-a-vis
an
interest-bearing
asset
or
placing
the
money
in
a
cash
deposit
account.
On
the
flipside,
lower
inflation
tends
to
be
positive
for
Gold
as
it
brings
interest
rates
down,
making
the
bright
metal
a
more
viable
investment
alternative.
US equities edge higher as Nvidia scores another gain
401423 July 10, 2024 04:41 Forexlive Latest News Market News
SPX
daily
The
equity
market
showed
some
modest
disappointment
that
Fed
Chair
Jerome
Powell
didn’t
offer
more
of
a
dovish
narrative
but
quickly
shrugged
off
the
disappointment
and
hung
onto
gains.
It
was
the
fifth
consecutive
higher
close
for
the
S&P
500,
all
records.
-
S&P
500
+0.1% -
Nasdaq
Comp
+0.1% -
DJIA
-0.1% -
Russell
2000
-0.5% -
Toronto
TSX
Comp
-0.4%
Tomorrow
features
the
second
day
of
testimony
from
Powell
but
that’s
usually
a
repeat
of
the
same
themes.
It
looks
like
we
will
have
to
wait
until
Thursday
to
get
some
market-moving
data.
Meanwhile,
tech
stocks
continue
to
bounce
around
and
it
was
Nvidia
with
a
2.5%
gain
today
and
Tesla
continuing
the
short
squeeze,
up
3.7%.
Gold stays bid during start of Powell testimony
401421 July 10, 2024 04:40 FXStreet Market News
-
Gold
trades
higher
despite
Fed
Chairman
Powell’s
hawkish
testimony
to
the
Senate
on
Tuesday. -
The
yellow
metal
sold
off
on
Monday
following the
news
the
PBoC
had stopped
purchasing
Gold
for
the
second
month
in
a
row. -
The
PBoC
is
one
of
the
largest
consumers
of
the
precious
metal
and
for
18
consecutive
months
until
May
accumulated
Gold.
Gold
(XAU/USD)
is
trading
higher
in
the
$2,360s
on
Tuesday
–
stabilizing
after
the
heavy
sell-off
on
Monday.
The
precious
metal
remains
bid
despite
the hawkish
start
to
Federal
Reserve
(Fed)
Chairman
Jerome
Powell’s
testimony
to
the
Senate
Banking
Committee
on
Tuesday.
Powell
said
the
Fed
had
no
plans
to
cut
interest
rates
yet
and
would
be
adopting
a
data-dependent
approach,
deciding
on a
“meeting-by-meeting
basis”
whether
or
not
to
cut
interest
rates.
Powell’s
commetnary
strengthened
the
US
Dollar
but
did
not
weigh
too
heavily
on
Gold
despite
promising
higher
interest
rates
for
longer.
Gold
tends
not
to
perform
so
well
when
interest
rates
are
expected
to
remain
elevated
as
it
raises
the
opportunity
cost
of
holding
the
precious
metal.
Gold’s
weakness
at
the
start
of
the
week
came
after
the
news
that
the
People’s
Bank
of
China
(PBoC),
one
of
the
largest
consumers
of
Gold
in
the
world,
had
not
bought
any
Gold
for
the
second
month
in
a
row
in
June,
after
18
consecutive
months
of
reserve-building,
according
to
data
from
the
PBoC.
Gold
declines
on
impact
of
Trump
on
bond
markets
Gold
has weakened
recently
as
a
result
of
the
US
Treasury
bond
market
absorbing
political
risk
from
an
increased
chance
that
former
President
Donald
Trump
will
win
the
US
presidential
election
in
November.
If
Trump
wins
the
presidency,
he
is
expected
to
cut
taxes
and
borrow,
leading
to
a
worsening
fiscal
position
for
the
US.
Critics
say
his
fiscal
profligacy
will
lead
to
higher
inflation,
which
in
turn
will
keep
interest
rates
high.
Gold
is
falling
because
it
is
a
non-interest-bearing
asset
that
becomes
less
attractive
to
investors
when
interest
rates
are
high.
The
possibility
of
a
Trump
presidency
is
pushing
bond
prices
down
and
bond
yields
up,
benefiting
the
US
Dollar
(USD)
because
of
its
high
correlation
with
yields.
This,
in
turn,
weighs
on
the
Gold
price,
which
is
primarily
bought
and
sold
in
USD.
After
a
recent
televised
debate
in
Atlanta,
in
which
President
Biden
struggled
to
answer
several
of
the
questions,
critics
raised
doubts
about
his
cognitive
capacity
given
his
advanced
years
and
possible
dementia.
The
upshot
is
that
Trump
has
increased
his
lead
in
opinion
polls.
Additionally,
if
Biden
steps
down,
his
number
two,
Kamala
Harris,
is
seen
as
unlikely
to
have
Biden’s
broad
appeal.
Trump’s
presidential
challenge
has
further
gained
credibility
after
the
US
Supreme
Court
decided
he
had
partial
immunity
from
any
responsibility
for
the
uprising
that
followed
his
defeat
at
the
2020
election
and
led
to
his
supporters
storming
Capitol
Hill.
Prior
to
the
ruling,
it
was
thought
Trump’s
various
indictments
might
disrupt
his
campaign
or
prevent
him
from
taking
office.
Technical
Analysis:
Gold
forms
a
two-bar
reversal
Gold
has
formed
a
two-bar
reversal
pattern
(green
shaded
rectangle)
after
climbing
to
a
major
resistance
level
at
the
June
7
high
at
$2,388.
This
pattern
forms
after
a
long
green-up
day
is
followed
by
a
long
red-down
day
of
a
similar
length
and
size.
When
this
occurs
at
a
market
top,
it
can
be
a
short-term
reversal
sign.
XAU/USD
Daily
Chart
The
outlook
is
unclear,
but
Gold
could
pull
back
now,
perhaps
falling
to
the
50-day
Simple
Moving
Average
(SMA)
at
$2,342.
If
Gold
can
break
above
Friday’s
peak
of
$2,393,
it
will
continue
the
sequence
of
higher
highs
and
probably
unlock
the
next
target
at
the
$2,451
all-time
high.
The
bearish
Head
&
Shoulders
topping
pattern
that
formed
from
April
to
June
has
been
invalidated
by
the
recent
recovery.
However,
there
is
still
a
chance
–
albeit
much
reduced
– that
a
more
complex
topping
pattern
may
have
formed
instead.
If
a
complex
pattern
has
formed
in
place
of
the
H&S,
and
the
price
breaks
below
the
pattern’s
neckline
at
$2,279,
a
reversal
lower
may
still
be
possible
with
a
conservative
target
at
$2,171,
the
0.618
ratio
of
the
height
of
the
pattern
extrapolated
lower.
The
trend
is
now
sideways
in
both
the
short
and
medium
term.
In
the
long
term,
Gold
remains
in
an
uptrend.
Gold
FAQs
Gold
has
played
a
key
role
in
human’s
history
as
it
has
been
widely
used
as
a
store
of
value
and
medium
of
exchange.
Currently,
apart
from
its
shine
and
usage
for
jewelry,
the
precious
metal
is
widely
seen
as
a
safe-haven
asset,
meaning
that
it
is
considered
a
good
investment
during
turbulent
times.
Gold
is
also
widely
seen
as
a
hedge
against
inflation
and
against
depreciating
currencies
as
it
doesn’t
rely
on
any
specific
issuer
or
government.
Central
banks
are
the
biggest
Gold
holders.
In
their
aim
to
support
their
currencies
in
turbulent
times,
central
banks
tend
to
diversify
their
reserves
and
buy
Gold
to
improve
the
perceived
strength
of
the
economy
and
the
currency.
High
Gold
reserves
can
be
a
source
of
trust
for
a
country’s
solvency.
Central
banks
added
1,136
tonnes
of
Gold
worth
around
$70
billion
to
their
reserves
in
2022,
according
to
data
from
the
World
Gold
Council.
This
is
the
highest
yearly
purchase
since
records
began.
Central
banks
from
emerging
economies
such
as
China,
India
and
Turkey
are
quickly
increasing
their
Gold
reserves.
Gold
has
an
inverse
correlation
with
the
US
Dollar
and
US
Treasuries,
which
are
both
major
reserve
and
safe-haven
assets.
When
the
Dollar
depreciates,
Gold
tends
to
rise,
enabling
investors
and
central
banks
to
diversify
their
assets
in
turbulent
times.
Gold
is
also
inversely
correlated
with
risk
assets.
A
rally
in
the
stock
market
tends
to
weaken
Gold
price,
while
sell-offs
in
riskier
markets
tend
to
favor
the
precious
metal.
The
price
can
move
due
to
a
wide
range
of
factors.
Geopolitical
instability
or
fears
of
a
deep
recession
can
quickly
make
Gold
price
escalate
due
to
its
safe-haven
status.
As
a
yield-less
asset,
Gold
tends
to
rise
with
lower
interest
rates,
while
higher
cost
of
money
usually
weighs
down
on
the
yellow
metal.
Still,
most
moves
depend
on
how
the
US
Dollar
(USD)
behaves
as
the
asset
is
priced
in
dollars
(XAU/USD).
A
strong
Dollar
tends
to
keep
the
price
of
Gold
controlled,
whereas
a
weaker
Dollar
is
likely
to
push
Gold
prices
up.
Crypto Today: Bitcoin, Ethereum, XRP sustain recent gains, German government transfers $360 million in BTC
401419 July 10, 2024 04:40 FXStreet Market News
-
Bitcoin
sustained
above
$57,500
despite
German
government
transfer
of
over
$360
million
in
BTC. -
Ethereum
trades
above
the
key
psychological
level
of
$3,000
amidst
Ethereum
and
Solana
ETF
optimism. -
XRP
holds
above
$0.43,
adding
nearly
0.50%
to
its
value
as
traders
await
final
ruling
in
SEC
vs.
Ripple
lawsuit.
Bitcoin,
Ethereum
and
Ripple
updates
Chart
of
the
day
BONK/USDT
daily
chart
BONK
is
trading
at
$0.00002624
at
the
time
of
writing.
The
meme
coin
is
likely
to
extend
its
gains
by
another
14%
and
climb
to
$0.00003006,
the
50%
Fibonacci
retracement
of
the
meme
coin’s
drop
from
the
March
4
top
of
$0.000048
to
the
April
13
low
of
$0.000012.
The
Relative
Strength
Index
(RSI),
a
momentum
indicator,
reads
55.46,
above
the
neutral
level.
This
signals
there
is
positive
momentum
in
BONK’s
uptrend.
Market
updates
-
Data
from
Soso
value
shows
that
the
total
net
inflow
of
Bitcoin
Spot
ETFs
was
$295
million
on
July
8,
the
highest
level
in
21
days.
This
supports
the
case
for
Bitcoin’s
recovery
after
the
recent
correction. -
Cboe
BZX
filed
form
19b-4
for
the
21Shares
Core
Solana
ETF
and
VanEck
Solana
Trust,
market
participants
await
Solana
ETF
approval
by
the
regulator. -
Shiba
Inu
announced
Block
Travel
accepts
SHIB
as
payment
for
flights
and
hotel
bookings
in
recent
tweet.
SHIB
takes
flight
in
the
travel
industry!
Block
Travel,
a
global
travel
agency,
now
accepts
$SHIB
for
flights,
hotels
&
more!
✈️
Let
us
know
your
dream
Shiba
travel
destinations
in
the
comments!Read
about
it
below
https://t.co/PLkfxDo4WX—
Shib
(@Shibtoken)
July
8,
2024
Industry
updates
-
A
report
from
Forbes
shows
that
Argentina
has
a
higher
rate
of
crypto
adoption
compared
to
any
other
country
in
the
Western
Hemisphere.
Out
of
130
million
crypto
traders
across
the
world’s
55
largest
exchanges,
2.5
million
are
from
Argentina. -
A
Layer
2
solution
was
launched,
leveraging
Arbitrum
Orbit
tech
stack,
called
OEV
Network
mainnet.
API3
launched
the
Layer
2
project
to
enable
DeFi
protocols
to
reclaim
the
value
they
lose
to
liquidations.
The
solution
to
oracle
extractable
value
is
here!
@OEVNetwork
is
officially
live
and
integrated
with
the
API3
Oracle
Stack.Every
lending
protocol,
on
every
API3
supported
chain,
now
has
a
built-in
solution
to
recapture
protocol
MEV.It
pays
to
upgrade
your
oracle.
pic.twitter.com/I0rSpTUb6l—
API3
(@API3DAO)
July
9,
2024
-
Digital
trust
network
Nodle
proposes
using
smartphones
as
nodes
to
create
a
DePIN
solution
for
real-world
use
cases.
This
is
a
part
of
the
Elastic
Chain
network.
Full Article
Ripple on-chain activity spikes as XRP hovers around $0.43
401414 July 10, 2024 04:14 FXStreet Market News
-
Ripple
active
addresses
climbed
over
30%
on
Tuesday,
per
Santiment
data. -
XRP
traders
await
the
end
of
the
SEC’s
lawsuit
against
Ripple,
expected
by
July
31. -
Ripple
investors
realized
over
$144
million
in
losses
in
July. -
XRP
hovers
around
$0.43
on
Tuesday,
adding
nearly
1%
value
to
the
altcoin.
Ripple
(XRP)
on-chain
activity
shows
an
increase
in
activity
among
XRP
traders.
The
number
of
active
traders
increased
on
Tuesday,
meaning
XRP
is
gaining
relevance
among
market
participants.
With
Bitcoin
back
above
$57,000,
there
is
optimism
among
traders.
Pro-crypto
attorney
Fred
Rispoli
told
followers
on
X
that
the
US
Securities
and
Exchange
Commission
(SEC)
vs.
Ripple
lawsuit
is
likely
to
end
in
July
2024.
XRP
traders
are
likely
watching
lawsuit
developments
and
overall
sentiment
among
crypto
traders
for
clues
on
where
the
altcoin
is
headed.
Daily
digest
market
movers:
Ripple’s
address
activity
rises,
price
recovers
-
Ripple
noted
a
30%
increase
in
active
addresses
in
a
single
day,
to
22,256
on
Tuesday,
as
seen
on
Santiment. -
The
rise
in
active
addresses
is
indicative
of
an
increase
in
the
asset’s
relevance
among
traders
and
higher
demand
across
exchange
platforms.
XRP
active
addresses
-
The
Network
Realized
Profit/Loss
metric
(NPL)
from
Santiment
crypto
intelligence
tracker
shows
that
traders
have
realized
over
$144
million
in
losses
in
July.
This
could
be
a
sign
of
capitulation
among
traders,
meaning
the
altcoin
could
soon
recover
from
the
recent
decline
in
its
price. -
The
consistent
negative
spikes
in
the
NPL
metric
indicate
the
losses
incurred
by
XRP
traders.
XRP
NPL
vs.
price
-
XRP
traders
are
awaiting
the
end
of
the
SEC
vs.
Ripple
lawsuit,
and
per
Attorney
Fred
Rispoli,
this
is
likely
before
the
end
of
July
2024.
SEC
vs.
Ripple
lawsuit
ruling
could
come
out
as
early
as
July
13,
according
to
this
pro-crypto
attorney
Technical
Analysis:
XRP
hovers
around
$0.43
on
Tuesday
Ripple
recovered
from
its
decline
to
the
2024
low
of
$0.3823
hit
on
July
5.
The
altcoin
is
hovering
close
to
$0.43
on
Tuesday.
The
Relative
Strength
Index
(RSI)
on
the
XRP/USDT
daily
chart
shows
that
Ripple
is
out
of
the
oversold
zone.
The
RSI
dipped
under
30
on
Friday,
July
5.
Since
then,
the
RSI
indicator
has
climbed
to
37.89,
signaling
strength
in
Ripple’s
uptrend.
XRP
could
climb
to
the
upper
boundary
of
the
Fair
Value
Gap
at
$0.4611,
as
seen
in
the
chart
below.
The
altcoin
faces
resistance
at
the
psychologically
important
$0.50
level.
XRP/USDT
daily
chart
A
daily
candlestick
close
below
support
at
$0.4032
could
invalidate
the
bullish
thesis
and
send
XRP
to
retest
the
July
5
low
of
$0.3823.
SEC
vs
Ripple
lawsuit
FAQs
It
depends
on
the
transaction,
according
to
a
court
ruling
released
on
July
14:
For
institutional
investors
or
over-the-counter
sales,
XRP
is
a
security.
For
retail
investors
who
bought
the
token
via
programmatic
sales
on
exchanges,
on-demand
liquidity
services
and
other
platforms,
XRP
is
not
a
security.
The
United
States
Securities
&
Exchange
Commission
(SEC)
accused
Ripple
and
its
executives
of
raising
more
than
$1.3
billion
through
an
unregistered
asset
offering
of
the
XRP
token.
While
the
judge
ruled
that
programmatic
sales
aren’t
considered
securities,
sales
of
XRP
tokens
to
institutional
investors
are
indeed
investment
contracts.
In
this
last
case,
Ripple
did
breach
the
US
securities
law
and
will
need
to
keep
litigating
over
the
around
$729
million
it
received
under
written
contracts.
The
ruling
offers
a
partial
win
for
both
Ripple
and
the
SEC,
depending
on
what
one
looks
at.
Ripple
gets
a
big
win
over
the
fact
that
programmatic
sales
aren’t
considered
securities,
and
this
could
bode
well
for
the
broader
crypto
sector
as
most
of
the
assets
eyed
by
the
SEC’s
crackdown
are
handled
by
decentralized
entities
that
sold
their
tokens
mostly
to
retail
investors
via
exchange
platforms,
experts
say.
Still,
the
ruling
doesn’t
help
much
to
answer
the
key
question
of
what
makes
a
digital
asset
a
security,
so
it
isn’t
clear
yet
if
this
lawsuit
will
set
precedent
for
other
open
cases
that
affect
dozens
of
digital
assets.
Topics
such
as
which
is
the
right
degree
of
decentralization
to
avoid
the
“security”
label
or
where
to
draw
the
line
between
institutional
and
programmatic
sales
are
likely
to
persist.
The
SEC
has
stepped
up
its
enforcement
actions
toward
the
blockchain
and
digital
assets
industry,
filing
charges
against
platforms
such
as
Coinbase
or
Binance
for
allegedly
violating
the
US
Securities
law.
The
SEC
claims
that
the
majority
of
crypto
assets
are
securities
and
thus
subject
to
strict
regulation.
While
defendants
can
use
parts
of
Ripple’s
ruling
in
their
favor,
the
SEC
can
also
find
reasons
in
it
to
keep
its
current
strategy
of
regulation
by
enforcement.
The
court
decision
is
a
partial
summary
judgment.
The
ruling
can
be
appealed
once
a
final
judgment
is
issued
or
if
the
judge
allows
it
before
then.
The
case
is
in
a
pretrial
phase,
in
which
both
Ripple
and
the
SEC
still
have
the
chance
to
settle.
Full Article
Powell testimony: Chairman notes tighter policy is having an effect on activity in housing sector
401413 July 10, 2024 04:14 FXStreet Market News
Jerome
Powell,
Chairman
of
the
US
Federal
Reserve
(Fed),
delivers
the
Semi-Annual
Monetary
Policy
Report
and
responds
to
questions
before
the
Senate
Banking
Committee
on
the
first
day
of
his
Congressional
testimony.
Powell
speech
main
takeaways
“More
good
data
would
strengthen
our
confidence on
inflation.”
“Elevated
inflation
is
not
the
only
risk
we
face.”
“Policy
rate
cut
not
appropriate
until
Fed
gains
greater
confidence
inflation
headed
sustainably
toward
2%.”
“First
quarter
data
did
not
support the
greater
confidence
in
inflation
path
that
Fed
needs
to
cut
rates.”
“We
continue
to
make
decisions
meeting
by
meeting.”
“Have
made
considerable
progress
toward
2%
inflation
goal,
recent
monthly
readings
show
modest
further
progress.”
“Inflation
remains
above 2%
goal.”
“Labor
market
conditions
have
cooled
while
remaining
strong, not
overheated.”
“Risks
to
achieving
employment,
inflation
goals
coming
into
better
balance.”
“US
economy
expanding
at
solid
pace.”
“Restrictive
policy
is
helping
put
downward
pressure
on
inflation.”
“Reducing
restraint
too
soon
or
too
much
risks
reversing
inflation
progress.”
“Reducing
restraint
too
late
or
too
little
could
unduly
weaken
economy,
job
market.”
“Fed
will
carefully
assess
incoming
data,
balance
of
risks,
appropriate
policy
path
in
rate
adjustments.”
“Remain
committed
to
2%
inflation
goal,
keeping
longer-term
inflation
expectations
well-anchored.”
“Fed’s
operational
independence
needed
to
take
longer-term
perspective
in
pursuit
of
goals.”
“Most
recent
labor
market
data
sent
a
pretty
clear
signal
that
the
labor
market
has
cooled
considerably.”
“Labor
market
is
more
or
less
back
to
pre-pandemic
levels.
“We
are
well
aware
we
now
face
two-sided
risks.”
“Labor
market
is
fully
back
in
balance
now.”
“If
we
move
too
quickly
or
slowly
on
rate
cuts,
there
are
risks
on
both
sides.”
“We
are
very
much
balancing
those
two
risks
these
days.”
“Not
likely
next
policy
move
would
be
a
rate
hike.”
“We
have
significant
housing
issues
in
the
country.”
“Pandemic
has
created
new
distortions
in
housing.”
“Our
tighter
policy
is
having
an
effect
on
activity
in
housing
sector.”
“For
housing
supply,
best
thing
we
can
do
is
get
inflation
down.”
“Record
is
clear
that
central
bank
operational
independence
serves
public
well.”
“This
is
a
choice
we
make
as
a
country
and
it’s
a
good
choice.”
“Our
economy
has
been
exceptional
compared
to
global
peers.”
Market
reaction
to
Powell
speech
These
comments
don’t
seem
to
be
having
a
noticeable
impact
on
the
US
Dollar’s
performance
against
its
major
rivals.
At
the
time
of
press,
the
US
Dollar
Index
was
virtually
unchanged
on
the
day
at
105.05.
US
Dollar
PRICE
Today
The
table
below
shows
the
percentage
change
of
US
Dollar
(USD)
against
listed
major
currencies
today.
US
Dollar
was
the
strongest
against
the
Japanese
Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | -0.02% | 0.21% | 0.03% | 0.04% | 0.02% | -0.00% | |
| EUR | -0.04% | -0.07% | 0.17% | -0.03% | 0.00% | -0.01% | -0.04% | |
| GBP | 0.02% | 0.07% | 0.25% | 0.04% | 0.09% | 0.06% | 0.03% | |
| JPY | -0.21% | -0.17% | -0.25% | -0.20% | -0.18% | -0.21% | -0.23% | |
| CAD | -0.03% | 0.03% | -0.04% | 0.20% | 0.00% | 0.02% | -0.04% | |
| AUD | -0.04% | -0.01% | -0.09% | 0.18% | -0.01% | -0.03% | -0.07% | |
| NZD | -0.02% | 0.01% | -0.06% | 0.21% | -0.02% | 0.03% | -0.03% | |
| CHF | 0.00% | 0.04% | -0.03% | 0.23% | 0.04% | 0.07% | 0.03% |
The
heat
map
shows
percentage
changes
of
major
currencies
against
each
other.
The
base
currency
is
picked
from
the
left
column,
while
the
quote
currency
is
picked
from
the
top
row.
For
example,
if
you
pick
the
US
Dollar
from
the
left
column
and
move
along
the
horizontal
line
to
the
Japanese
Yen,
the
percentage
change
displayed
in
the
box
will
represent
USD
(base)/JPY
(quote).
This
section
below
was
published
as
a
preview
of
Fed
Chairman
Powell’s
testimony
at
09:00
GMT.
-
Jerome
Powell’s
testimony
in
the
US
Congress
will
be
a
top-tier
market-moving
event
this
week. -
New
clues
on
the
Federal
Reserve
interest
rate
path
are
awaited. -
US
Dollar,
stock
markets,
and
other
asset
classes
could
see
big
swings
with
the
Fed
Chair’s
words.
Jerome
Powell,
Chairman
of
the
US
Federal
Reserve
(Fed),
will
deliver
the
Semi-Annual
Monetary
Policy
Report
and
testify
before
the
Senate
Banking
Committee
on
Tuesday.
The
hearing,
entitled
“The
Semi-Annual
Monetary
Policy
Report
to
the
Congress,”
will
start
at
14:00
GMT,
and
it
will
have
the
full
attention
of
all
financial
market
players.
Jerome
Powell
is
expected
to
address
the
main
takeaways
of
the
Fed’s
Semi-Annual
Federal
Reserve
Monetary
Policy
Report,
published
last
Friday.
In
that
report,
the
Fed
noted
that
they
have
seen
modest
further
progress
on
inflation
this
year
but
added
that
they
still
need
greater
confidence
before
moving
to
rate
cuts.
“Labor
supply
and
demand
resembles
period
right
before
the
pandemic,
when
the
labor
market
was
relatively
tight
but
not
overheated,”
the
publication
read.
US
representatives
are
expected
to
ask
Powell
about
the
interest
rate
path,
inflation
developments,
and
the
economic
growth
outlook
in
a
long
Q&A
session.
However,
they
could
focus
on
politics
because
of
the
upcoming
November
Presidential
election,
making
it
difficult
for
Powell
to
respond
to
questions.
The
CME
Group
FedWatch
Tool
shows
that
markets
price
in
only
25%
probability
that
the
Fed
will
leave
the
policy
rate
unchanged
in
September.
The
latest
jobs
report
showed
that
US
Nonfarm
Payrolls
(NFP)
rose
206,000
in
June.
This
reading
came
in
above
the
market
expectation
of
190,000,
but
the
US
Bureau
of
Labor
Statistics
(BLS)
announced
that
May’s
NFP
increase
was
revised
down
to
218,000
from
272,000.
Additionally,
the
Unemployment
Rate
edged
higher
to
4.1%
from
4%,
while
the
annual
wage
inflation,
as
measured
by
the
change
in
the
Average
Hourly
Earnings,
declined
to
3.9%
on
a
yearly
basis
from
4.1%.
In
case
Powell
adopts
an
optimistic
tone
about
the
inflation
outlook
and
acknowledges
loosening
conditions
in
the
labor
market,
investors
could
remain
optimistic
about
a
September
rate
cut.
The
market
positioning
suggests
that
there
is
some
room
for
further
US
Dollar
(USD)
weakness
in
this
scenario.
On
the
other
hand,
market
participants
could
reassess
the
probability
of
a
rate
reduction
in
September
and
help
the
USD
hold
its
ground
if
Powell
downplays
the
gloomy
labor
market
figures
and
remains
cautious
about
the
continuation
of
disinflation.
About
Jerome
Powell
(via
Federalreserve.gov)
“Jerome
H.
Powell
first
took
office
as
Chair
of
the
Board
of
Governors
of
the
Federal
Reserve
System
on
February
5,
2018,
for
a
four-year
term.
He
was
reappointed
to
the
office
and
sworn
in
for
a
second
four-year
term
on
May
23,
2022.
Mr.
Powell
also
serves
as
Chairman
of
the
Federal
Open
Market
Committee,
the
System’s
principal
monetary
policymaking
body.
Mr.
Powell
has
served
as
a
member
of
the
Board
of
Governors
since
taking
office
on
May
25,
2012,
to
fill
an
unexpired
term.
He
was
reappointed
to
the
Board
and
sworn
in
on
June
16,
2014,
for
a
term
ending
January
31,
2028.”
Fed
FAQs
Monetary
policy
in
the
US
is
shaped
by
the
Federal
Reserve
(Fed).
The
Fed
has
two
mandates:
to
achieve
price
stability
and
foster
full
employment.
Its
primary
tool
to
achieve
these
goals
is
by
adjusting
interest
rates.
When
prices
are
rising
too
quickly
and
inflation
is
above
the
Fed’s
2%
target,
it
raises
interest
rates,
increasing
borrowing
costs
throughout
the
economy.
This
results
in
a
stronger
US
Dollar
(USD)
as
it
makes
the
US
a
more
attractive
place
for
international
investors
to
park
their
money.
When
inflation
falls
below
2%
or
the
Unemployment
Rate
is
too
high,
the
Fed
may
lower
interest
rates
to
encourage
borrowing,
which
weighs
on
the
Greenback.
The
Federal
Reserve
(Fed)
holds
eight
policy
meetings
a
year,
where
the
Federal
Open
Market
Committee
(FOMC)
assesses
economic
conditions
and
makes
monetary
policy
decisions.
The
FOMC
is
attended
by
twelve
Fed
officials
–
the
seven
members
of
the
Board
of
Governors,
the
president
of
the
Federal
Reserve
Bank
of
New
York,
and
four
of
the
remaining
eleven
regional
Reserve
Bank
presidents,
who
serve
one-year
terms
on
a
rotating
basis.
In
extreme
situations,
the
Federal
Reserve
may
resort
to
a
policy
named
Quantitative
Easing
(QE).
QE
is
the
process
by
which
the
Fed
substantially
increases
the
flow
of
credit
in
a
stuck
financial
system.
It
is
a
non-standard
policy
measure
used
during
crises
or
when
inflation
is
extremely
low.
It
was
the
Fed’s
weapon
of
choice
during
the
Great
Financial
Crisis
in
2008.
It
involves
the
Fed
printing
more
Dollars
and
using
them
to
buy
high
grade
bonds
from
financial
institutions.
QE
usually
weakens
the
US
Dollar.
Quantitative
tightening
(QT)
is
the
reverse
process
of
QE,
whereby
the
Federal
Reserve
stops
buying
bonds
from
financial
institutions
and
does
not
reinvest
the
principal
from
the
bonds
it
holds
maturing,
to
purchase
new
bonds.
It
is
usually
positive
for
the
value
of
the
US
Dollar.
Crude oil futures settle at $81.41
401412 July 10, 2024 03:40 Forexlive Latest News Market News
The
price
of
crude
oil
settled
at
$81.41.
That
is
down
$-0.92
or
-1.12%.The
fall
is
the
3rd
day
in
a
row
lower.
Technically,
looking
at
the
daily
chart,
the
high
price
on
Friday
–
before
the
move
lower
–
peaked
at
$84.52.
That
price
tested
the
topside
trendline
connecting
highs
from
April
2023
and
May
2024.
The
inability
to
get
above
that
trendline,
gave
the
sellers
the
go-ahead
to
correct
to
the
downside.
The
last
three
days
have
now
seen
the
price
move
down
to
a
low
today
of
$81.25
or
down
-3.8%
from
the
high.
The
next
target
on
the
daily
chart
comes
in
at
a
swing
level
near
$80.62
(see
red
number
circles).
Below
that
is
the
rising
100-day
moving
average
at
$80.35.
There
should
be
support
near
those
levels
on
a
test
(be
aware).
However,
if
broken,
the
price
can
move
down
to
$79.21
where
the
200-day
moving
average
is
found.
Sellers
are
making
a
play.
However,
support
is
approaching.
Crude
oil
is
moving
down
toward
a
cluster
of
support
Gold price inches higher as Powell signals patience
401410 July 10, 2024 03:39 FXStreet Market News
-
Gold
prices
rise
above
$2,360
after
Powell’s
Senate
testimony
indicates
a
cautious
approach
to
rate
cuts. -
US
10-year
Treasury
yield
edges
up
to
4.296%,
while
DXY
gains
0.14%. -
World
Gold
Council
reports
second
month
of
ETF
inflows,
contrasting
with
PBoC’s
pause
in
Gold
purchases.
Gold
prices
edged
up
during
Tuesday’s
North
American
session
after
Federal
Reserve
Chair
Jerome
Powell
appeared
at
the
US
Senate
Banking
Committee
and
stated
that
inflation
is
moving
toward
the
Fed’s
2%
goal,
yet
it
is
not
ready
to
lower
borrowing
costs.
The
XAU/USD
trades
at
$2,364,
gaining
more
than
0.25%.
The
golden
metal
recovered
slightly
amid
elevated
US
Treasury
bond
yields
and
a
firm
US
Dollar.
The
US
10-year
benchmark
note
coupon
climbs
one-and-a-half
basis
points
(bps)
to
4.296%,
while
the
US
Dollar
Index
(DXY)
trends
steadily
above
the
105.00
mark,
gaining
0.14%.
Fed
Chair
Powell
stated
that
“elevated
inflation
is
not
the
only
risk
we
face,”
warning
that
lowering
interest
rates
too
little
or
too
soon
could
put
the
economy
at
risk.
He
added
that
while
it’s
possible
to
hike
rates
if
the
data
supports
it,
the
most
likely
direction
would
be
to
“begin
to
loosen
policy
at
the
right
moment.”
Aside
from
this,
the
World
Gold
Council
(WGC)
revealed
that
Gold
exchange-traded
funds
(ETFs)
experienced
a
second
month
of
inflows
in
June.
The
WGC
stated
that
total
fund
holdings
rose
by
around
18
tonnes
to
3,106
tonnes.
This
contrasts
with
the
People’s
Bank
of
China’s
(PBoC)
decision
not
to
buy
Gold
in
June
as
it
did
in
May.
China
held
72.80
million
troy
ounces
of
the
precious
metal
at
the
end
of
June.
The
US
economic
docket
during
the
week
will
feature
Powell’s
speech
at
the
US
House
of
Representatives
on
Wednesday,
followed
by
the
release
of
inflation
figures
on
the
consumer
and
producer
sides.
Initial
Jobless
Claims
and
the
University
of
Michigan
Consumer
Sentiment
will
complement
the
schedule.
Daily
digest
market
movers:
Gold
price
advances
during
Powell’s
speech
-
US
CPI
is
expected
to
decrease
from
3.3%
to
3.1%
YoY
in
June,
while
core
inflation
is
projected
to
remain
steady
at
3.4%
YoY. -
According
to
the
consensus,
Initial
Jobless
Claims
for
the
week
ending
July
6
are
expected
to
increase
from
238K
to
240K. -
July
Consumer
Sentiment
is
set
to
improve
to
68.5,
up
from
68.2
in
June,
according
to
the
consensus. -
Federal
Open
Market
Committee
(FOMC)
June
Meeting
Minutes
revealed
that
most
participants
believe
the
current
policy
is
restrictive
but
are
open
to
further
rate
increases.
Policymakers
acknowledged
that
the
economy
is
cooling
and
could
respond
to
unexpected
economic
weaknesses. -
According
to
data
from
the
CME
FedWatch
Tool,
investors
are
pricing
in
70%
odds
of
a
Fed
rate
cut
in
September,
up
from
73%
on
Monday. -
December
2024
fed
funds
rate
futures
contract
implies
that
the
Fed
will
ease
policy
by
39
basis
points
(bps)
toward
the
end
of
the
year.
Technical
analysis:
Gold
price
hovers
around
Head-and-Shoulders
neckline
Gold
price
formed
a
bearish
Harami
candlestick
pattern
after
breaching
the
Head-and-Shoulders
neckline,
which
pushed
XAU/USD
toward
the
$2,400
figure
before
tumbling
to
the
current
price
level.
Buyers
are
still
in
charge
with
the
Relative
Strength
Index
(RSI)
standing
in
bullish
territory
above
the
50-neutral
line.
Therefore,
Gold’s
first
resistance
would
be
the
July
5
high
at
$2,392,
followed
by
the
$2,400
figure.
Further
upside
is
seen,
with
the
next
resistance
lying
at
the
year-to-date
high
of
$2,450,
ahead
of
the
$2,500
mark.
Conversely,
if
XAU/USD
slumps
below
$2,350,
the
golden
metal
might
decline
to
the
$2,300
level.
If
this
support
fails,
the
next
demand
zone
would
be
the
May
3
low
of
$2,277,
followed
by
the
March
21
high
of
$2,222.
Gold
FAQs
Gold
has
played
a
key
role
in
human’s
history
as
it
has
been
widely
used
as
a
store
of
value
and
medium
of
exchange.
Currently,
apart
from
its
shine
and
usage
for
jewelry,
the
precious
metal
is
widely
seen
as
a
safe-haven
asset,
meaning
that
it
is
considered
a
good
investment
during
turbulent
times.
Gold
is
also
widely
seen
as
a
hedge
against
inflation
and
against
depreciating
currencies
as
it
doesn’t
rely
on
any
specific
issuer
or
government.
Central
banks
are
the
biggest
Gold
holders.
In
their
aim
to
support
their
currencies
in
turbulent
times,
central
banks
tend
to
diversify
their
reserves
and
buy
Gold
to
improve
the
perceived
strength
of
the
economy
and
the
currency.
High
Gold
reserves
can
be
a
source
of
trust
for
a
country’s
solvency.
Central
banks
added
1,136
tonnes
of
Gold
worth
around
$70
billion
to
their
reserves
in
2022,
according
to
data
from
the
World
Gold
Council.
This
is
the
highest
yearly
purchase
since
records
began.
Central
banks
from
emerging
economies
such
as
China,
India
and
Turkey
are
quickly
increasing
their
Gold
reserves.
Gold
has
an
inverse
correlation
with
the
US
Dollar
and
US
Treasuries,
which
are
both
major
reserve
and
safe-haven
assets.
When
the
Dollar
depreciates,
Gold
tends
to
rise,
enabling
investors
and
central
banks
to
diversify
their
assets
in
turbulent
times.
Gold
is
also
inversely
correlated
with
risk
assets.
A
rally
in
the
stock
market
tends
to
weaken
Gold
price,
while
sell-offs
in
riskier
markets
tend
to
favor
the
precious
metal.
The
price
can
move
due
to
a
wide
range
of
factors.
Geopolitical
instability
or
fears
of
a
deep
recession
can
quickly
make
Gold
price
escalate
due
to
its
safe-haven
status.
As
a
yield-less
asset,
Gold
tends
to
rise
with
lower
interest
rates,
while
higher
cost
of
money
usually
weighs
down
on
the
yellow
metal.
Still,
most
moves
depend
on
how
the
US
Dollar
(USD)
behaves
as
the
asset
is
priced
in
dollars
(XAU/USD).
A
strong
Dollar
tends
to
keep
the
price
of
Gold
controlled,
whereas
a
weaker
Dollar
is
likely
to
push
Gold
prices
up.