GOLD
Gold prices are trading flat, hovering just above the $2,300 level, after briefly falling below that crucial support level earlier in the session. The precious metal is under pressure as the US dollar strengthens ahead of tomorrow’s release of PCE inflation data. PCE is the Federal Reserve’s favourite inflation measure, and market dynamics, which have seen the greenback gaining ground against other major currencies, suggest that traders anticipate a number reinforcing the high-for-longer interest rates narrative. With the US economy remaining resilient, even a slight upside surprise in PCE could give the Fed more leeway to maintain current interest rates for longer, possibly until December or beyond. That scenario would bode poorly for the price of bullion.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Stocks opened higher in Europe on Thursday, paring some of yesterday’s losses from the US tech sector. Overall, risk appetite remains low, and market volatility is rising as uncertainty lingers on multiple fronts, making the big picture hard to assess for investors.
Yesterday’s disappointing results from US chipmaker Micron Technology has blown another cold wind on the industry, impacting the share price of most companies in the sector. In a domino effect, the news has also affected stock benchmarks, as the tech sector still accounts for a big part of the broader market’s performance.
Meanwhile, investors are also bracing for a volatile end to the week, waiting for more macro developments from the US and EU, starting today with the US Durable Goods, Initial Jobless Claims, and GDP data, while EU Economic and Consumer Confidence data also loom this morning. The STOXX-50 index has now broken out of its short-term bullish channel, which opens the doors to a deeper market correction towards 4,875.0pts and 4,815.0pts.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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