Daily summary: Gold slumps to key support as market sentiment deteriorates

5:55 PM September 15, 2022
  • European indices finished today’s session in mixed moods, with DAX, CAC40 and FTSE MIB falling while FTSE 100 and IBEX 35 rose.  Financials were among the best performers after Morgan Stanley upgraded the banking sector. 
  • Mixed moods prevail also on Wall Street as traders digest slew on fresh economic data. Currently Dow Jones is trading 0.18% higher, while S&P500 and Nasdaq fell 0.20% and 0.45% respectively.

  • US retail sales rose 0.3% in August, recovering from a downwardly revised 0.4% decline in July while analysts expected it to be flat. However, core sales turned out to be a disappointment, highlighting the worsening consumer situation. Also, jobless claims fell to the lowest since May, export and import prices declined, while industrial production unexpectedly decelerated. 

  • Adobe stock plunged nearly 20% after announcing that it will acquire Figma for $20 billion in a cash and shares deal.

  • Oil is trading approximately 3.0% lower after the US Department of Energy announced that its plan of refilling the country’s strategic oil reserves does not include a trigger price. Earlier investors expected that the US would restock the emergency reserves should WTI prices drop below $80. 

  • NATGAS tumbled over 7.0% following news that US railroads reached a deal with the labour union which will prevent a rail workers’ strike that was expected to force generators to burn more gas to produce electricity.

  • Precious metals pulled back sharply amid a stronger dollar. Gold broke below major support at $1670, while silver retreated to $19.30 level.

  • Currently EUR and CHF are the best performing major currencies while AUD and GBP lag the most.

  • Cryptocurrencies plunged on Thursday despite a successful ETH "Merge". Bitcoin fell below psychological $20,000 level, while Ethereum tested $1460 level as investors decided to "sell the news".

  • Beijing court ruled that Chinese citizens are allowed to trade crypto, however cannot use them as means of payments.

GOLD continues to move south this week. Currently the price is testing the key support zone around $1670.00 which is marked with a lower limit of the 1:1 structure and lows from March 2020. Should break lower occur, downward impulse may accelerate towards 138.0% Fibonacci extension of the last upward move. Source: xStation5

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