Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Gold retests 4-weeks Support at $1836

The precious metal gold has witnessed a massive fall during the Asian session today; that sent gold prices so low to the four weeks support last seen on May 10, 2022. After pushing the price up to 1874, buyers were forced to take profits. The bulls quickly defended the last month's support at $1836, moving the price from this region to the current position above 1840. The price is currently ranging as the market awaits the consumer price index report for the concluded month, determining the next significant move for gold this week. This report is due to be released on Friday.

Minor Factors that influenced gold prices from today’s economic calendar

Trade Balance

The trade balance shows the difference in value between the imported and exported goods and services at the end of each month. A positive number from this data indicates that more goods and services were shipped rather than dependent on imports. A lower negative value than forecasted will mean bullish for US Dollar and impact gold negatively. While a higher negative value than forecasted will favour gold and weaken US dollars. The forecast for this data is -89.6B. The previous record was given at -109.8 Billion.

Treasury Secretary Yellen Speech

The US treasury Secretary - Janet Yellen, is expected to speak on the Fiscal year 2023 budget before the Senate Finance Committee in Washington DC. Often, her speeches have been used to signal policy shifts to the public and foreign governments. Her tone this time will determine the direction to be followed by investors; whether to dump risky assets (including gold) and embrace the dollar or vice-versa.

Consumer Credit

This measures the change in the total value of outstanding consumer credit requiring instalment payments. The consumer credit calculations are directly used to measure consumers' spending and confidence. Thus, a rising debt level is a sign that lenders are now fearless in giving loans. The consumers (borrowers) are also noticeably confident in their current financial position and eager to spend more money. The forecast for this data is 35.5B, while the previous is 52.4 billion. Higher readings from this data will mean positive and bullish for the US Dollar, negatively impacting gold.

Last Updated: 07/06/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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