Bullish rally in the precious metals market | 17 January 2020

Bullish rally in the precious metals market


XAUUSD:


We are expecting an uptrend to develop. Negative macroeconomic statistics from the United States will have a positive impact on the value of precious metals. Gold and the U.S. dollar have an inverse correlation. Nonfarm payrolls rose 145,000 in December, compared with expectations for a rise of 164,000 according to traders. The unemployment rate remained steady at 3.5%, as predicted. Average hourly earnings rose 0.1% for the month, versus expectations for a 0.3% rise. The bond prices have strengthened and this has lowered interest rates, making non-yielding gold more attractive.


Trading recommendation: Buy 1545 and take profit 1561.


Bullish rally in the precious metals market


#JPMorgan:


We are expecting the development of a downward trend in the shares of the largest American Bank this week. Negative macroeconomic statistics from the United States on employment caused a decline in yields in the government bond market. The jobs report also showed weak wage inflation, pressuring Treasury yields, which led to a slump in financials, mostly banks. Falling U.S. Treasury yields weigh on a bank's ability to generate net interest margin income – the difference between the rates they charge on loans and the rates they pay on deposits and borrowings.


Trading recommendation: Sell 137.33 and take profit 135.07.


Bullish rally in the precious metals market


#WTI:


We are expecting a bullish rally in the new five-day period. High geopolitical tensions in the Middle East will have a positive impact on the cost of oil. Iran admitted it accidentally shot down a Ukrainian jetliner that it mistook for a threat during hostilities with the U.S. Ukraine International Airlines Flight 752 was flying close to a sensitive Islamic Revolutionary Guard Corps military site when it was downed because of “human error,” the army said after conducting its own investigation.


Trading recommendation: Buy 58.90 and take profit 60.99

 

David Johnson
Analyst of «FreshForex» company
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