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Gold hammered by resurgent Dollar; Euro hits 28-month low

Sep 27 2019, 08:08 AM (BDT) | Forextime.com

 

Gold tumbled more than $30 on Wednesday, almost breaking below $1500 as political uncertainties in the United States and Brexit drama sent investors rushing towards the safety of King Dollar.

 

While global growth concerns and trade uncertainty among many other geopolitical risk factors are still supportive of the precious metal, an appreciating Dollar will most likely cap short-term gains. Where Gold concludes this week will be heavily influenced by the Greenback’s performance, US-China trade developments, Brexit and most importantly global sentiment.

 

Focusing on the technical picture, the precious metal is under pressure on the daily timeframe with prices trading around $1508 as of writing. Should $1500 prove to be an unreliable support, bears could have a shot at $1485. Alternatively, an intraday breakout above $1510 is likely to open the doors towards $1525.

 

 

Euro slides to 2 year low as bears eye 1.09

 

A resurgent Dollar has sent the Euro crashing to levels not seen in over two years below 1.0923 on Thursday.

 

More losses will be on the cards for the Euro as unfavourable macroeconomic conditions in Europe encourage investors to offload the currency at any given opportunity. In regards to the technical picture, the EURUSD is bearish on the daily charts as there have been consistently lower lows and lower highs. A solid daily close below 1.100 should inspire a decline towards 1.090 and 1.085, respectively.

 

 

 

Commodity spotlight – WTI Oil

 

What goes up must come down. This is the story defining oil prices after initially 20% higher last week Monday before surrendering almost all of its gains over eight trading days.

 

While the commodity’s valuation is set to be influenced by supply-side factors, demand-side concerns like rising US inventories, trade uncertainty and signs of slowing global growth will most likely cap upside gains. Should escalating trade tensions between the United States and China threaten global growth, this could translate to a drop in demand for Crude oil.

 

Geopolitical tensions are seen triggering negative supply side shocks. However, this will most likely be countered by falling demand.

 

Looking at the technical picture, WTI Oil can sink towards $55 if a daily close below $56 is achieved.

Forextime.com

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