gold price hits $1,830

TOPICS MENTIONED IN THIS MARKET BRIEFING:

  • LEuropean Stock Exchangesretreat after Fed comments
  • Wall Streetweighed down by tech
  • Chart of the day Gold :a key resistance to overcome

European stock markets fall after Fed comments

European Stock Exchanges retreated at the start of the session on Friday, in the wake of Wall Street and the major Asian markets, new statements by Federal Reserve officials having revived fears linked to the rise in interest rates and inflation.

The remarks made Thursday by several leaders of the Fed, in particular its governor and likely future vice-president, Lael Brainard, confirmed in the eyes of investors the scenario of a first rate hike in March.

Investors are also awaiting monthly retail sales figures in the United States and the first publications of results in the American banking sector, two factors that call for caution.

Wall Street weighed down by tech

Wall Street ended lower on Thursday on profit-taking, particularly technology stocks after three consecutive sessions of increases, while several Fed officials spoke about the need to curb rising inflation.

Before the Senate Banking Committee, Federal Reserve (Fed) Governor Lael Brainard on Thursday expressed her confidence in the ability of the US central bank to curb the rise in inflation, which is currently more than double the rate of inflation. objective of the institution.

Tech stocks, sensitive to the prospect of a Federal Reserve rate hike, have also suffered from the Nasdaq’s three consecutive bullish sessions since the start of the week.

Quarterly season kicks off as early as Friday with banks JPMorgan Chase, Citigroup and Wells Fargo, with the big tech companies publishing the following week.

Consequently, the Dow Jones lost 0.49% to 36,113.62 points. The Nasdaq dropped 2.51% and the S&P 500 fell 1.42%.

Othersfinancial market news

The oil market is on the rise despite the evolution of the COVID-19 epidemic in China fueling fears for demand while on the American side, Washington announced on Thursday the sale of 18 million barrels of crude oil drawn from strategic reserves, in an attempt to lower prices at the pump.

Today’s economic calendar:

Find the full economic calendar to know all the economic events to comer.

CHART OF THE DAY – Gold: a key resistance to overcome

Stock market: Lael Brainard (Fed) raises fears – Gold: the price of gold stumbles on $1,830

The price of gold has started a bullish recovery inside a channel. However, prices are once again held in check at the resistance at $1,830. Thus, this level is a key pivot to cross to unlock the upside potential.

In the event of a breakout, the yellow metal should continue its course towards the bearish slant towards $1,850. Moreover, an acceleration towards the upper limit of the channel towards 1,910 dollars cannot be ruled out.

On the other hand, if the market fails again on the resistance of $1,830, traders will wait for a pullback on the support zone towards $1,795 to buy cheaply.

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