Gold volatile after ECB, Trump's comments

Axiory Global Research Team Axiory Global Ltd.

It has been a rollercoaster day for gold so far on Thursday as the precious metal advanced 1% during the London session, only to give up all the gains and turn to sharp losses later in the day,

At 17.00 CET, gold was down 0.6% on the day, changing hands at 1,465 USD, down from 1,485 USD reached earlier in the day.

At first, gold soared sharply after the ECB upgraded its inflation forecast. Over the medium term, the inflation rate will increase, Lagarde said. Additionally, she noted The ECB's highly accommodative stance will continue for a prolonged period until inflation rises, and said that incoming economic and survey data point to some stabilization in the slowdown of economic growth in the euro area.

However, shortly after, the US President Donald Trump tweeted that (the US) is "Getting VERY close to a BIG DEAL with China. They want it, and so do we!". Stocks skyrocketed higher more than 1% within minutes, while gold was smacked hard and dropped 20 USD. Sentiment improved sharply, which benefited riskier assets and undermined safe havens, such as gold or the yen.

Technically speaking, today's reversal doesnt look very gold for the near future and bears might push the price further lower. The first stronger support is near 1,460 USD, where the November uptrend line is located.

If this level is taken out, further drop toward the current cycle lows of 1,450 USD could occur.

Alternatively, should the bullion recover, the first resistance seems at around 1,472 USD and afterward at today's highs at 1,485 USD.

Author

Axiory Global Research Team

Axiory Global Ltd.

Axiory Global Ltd. is a Forex broker that is trying to change rigid principles in the financial sector by a constant process of innovation. Since its beginning in 2011, the mission of Axiory Global Ltd.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.