- Mixed moods in Europe
- Wall Street slides ahead of FED meeting
- Precious metals took a hit after US PPI inflation reading
- Dogecoin gains after Musk's comments, Bitcoin below $47,000
European indices finished today's session in mixed moods - DAX fell 0.9%, while Italy’s FTSE MIB and the UK’s FTSE finished around the flat line, and Spain’s IBEX rose 0.4%. Stocks from basic resources and banking sectors moved higher while tech and travel companies took a hit due to persistent uncertainties regarding the potential impact of the omicron variant on the economy. WHO warned the new strain is spreading faster than any other and expressed uneasiness at the way it is being dismissed as a mild variant before any scientific conclusions. Also investors restrain themselves from making any big moves ahead of the key monetary policy decisions from major central banks including the US Fed, Bank of England, the ECB.
Major Wall Street indices extended yesterday losses, with Dow Jones losing over 0.40%, the S&P is trading 1.2% lower and the Nasdaq Composite fell nearly 2.0% as tech stocks plunged after data showed producer prices increased more than expected in November. The year-on-year increase hit a new record high ahead of the highly anticipated Fed policy statement due Wednesday. As it will be a quarterly meeting, a new set of economic forecasts and rate forecasts will be issued. Apart from that, the Fed is also expected to announce an acceleration in the pace of QE tapering. Recent data from the US has been solid and now the Fed may be more focused on bringing inflation back under control.
Major cryptocurrencies have not been able to take one clear direction today. Bitcoin is trading slightly lower, below $47,000 level. On the other hand, Dogecoin price soared after Elon Musk informed on Twitter that Tesla will accept memecoin as payment for some of its products. Precious metals launched today’s session under pressure and the sell-off accelerated after the publication of the US PPI inflation data. Currently gold is losing about 0.8% and silver is trading nearly 2% lower.
Looking technically at the gold chart on the D1 interval, the situation has not changed much- since the beginning of December, the price has remained in the local consolidation zone, however it is very possible that the situation will clear up after tomorrow's FED meeting. The key support is located around $ 1760 - $ 1765 zone, and break below may deepen the downward move.
Gold interval D1. Source: xStation5
