GOLD
As the European trading week gets underway, gold prices hedged up but remained within the narrow range where they have been since the beginning of the year. The precious metal has found solid support above the $2,000 level, but is struggling to gain upside as investors remain focused on the Federal Reserve policymaking and the impact such decisions will have on Treasury yields and the US dollar. Despite the escalating tension in the Middle East, which reached a new high over the weekend after the attack by Iran-linked militias on a US base in Jordan, the haven gold recorded only modest gains. This scenario shows that, even against a backdrop of geopolitical turbulence, which typically sees gold prices going up, the markets are barely budging, focusing instead on the upcoming Fed meeting and rate decision and January’s non-farm payrolls, all due later this week.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Stock markets fluctuated in Europe on Monday, holding gains as market sentiment takes a break ahead of a busy week full of macro developments.
Investors are bracing for another batch of key data from Europe, China, and the US, alongside highly awaited monetary policy meetings from the Fed and the BoE and speeches from ECB officials, which are also due.
In addition, investors will also have to face a huge amount of corporate results, including crucial earnings reports from Alphabet, AMD, Microsoft, Amazon, Apple, Meta Platform, BNP Paribas, Sanofi and Dassault Systeme.
Market volatility will likely remain high throughout the week, shaping a difficult environment for short-term traders.
The STOXX-50 index trades well above the 4,600.0pts mark as well as its bullish trendline, torn in different directions by uneven performances across all sectors.
A technical pull-back below 4,600.0pts, towards 4,595.0pts or even 4575.0pts, could occur without threatening the short-term bullish trend. On the other hand, a clearing of the 4,637.0pts resistance could open the way for an extended bullish move around 4,680.0pts.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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