Central Banks in 2022
Last week was characterized by monetary policy meetings of many central banks and numerous institutions from emerging markets.
Last week was characterized by monetary policy meetings of many central banks and numerous institutions from emerging markets.
Gold is touching this morning the daily resistance set at 1810 dollars per ounce. In case of daily close above this level, we envisage 1840 and then 1880 dollars.
Transitory inflation is dead. Yesterday the Federal Open Market Committee (FOMC), Fed’s monetary policy body, has definitively dropped the adjective “transitory” from its monetary policy stance.
The Federal Reserve has clearly set the tapering path. Powell, in fact, has indicated that he is ready to take action, further strengthening the newly launched tapering program.
The spread of Gold vs Eurostoxx has given us a first buy signal (i.e. long gold, short EUROSTOXX).
After yesterday’s OPEC+ meeting, today the focus of investors will be on Nonfarm Payrolls. The employment report is particularly relevant in this historical period.
WTI futures expiring in January are down again at the opening of the U.S. markets to 63.85 $/barrel. Instead, Brent crude oil settled at 66.59 $/barrel, in retreat compared to yesterday.
In the short term market is retracing heavily: market with futures is now on support in the area between 4630 and 4585.
We envisage a bullish move of GBP vs Euro and dollar.
Resistance on monthly chart broken at 0,8550.
As anticipated in our previous analysis, Gold has reached very strong resistance in the area of 1830-1840 dollars.
This is the area that, if broken, could bring to a strong upmove of gold vs other asset classes.