XAUUSD, H1
The Gold price has moved lower again today in the European session, continuing the move down from yesterday’s $1527.80 high. The breach of the H1 20-period moving average has been extended below the key S1 level at $1511.65 to a post intra-day low at $1506.25. The Daily time frame has support at $1500, $1492 and $1465.
The move in the Gold price is on the back of consolidation for the EGBs, after yesterday’s rally in European bond markets that was boosted by recession fears and dovish comments from ECB’s Rehn. 10-year yields have moved up from lows this morning. The German 10-year yield is up 0.6 bp at -0.71%, still close to the all-time low of -0.716% seen yesterday. UK 10-year rates are up 1.7 bp at 0.422%, but the 2-10 year part of the UK curve remains inverted as the short end continues to outperform and the 2-year rate lifted 2.7 bp this morning.
Stock markets, which closed in the red yesterday, despite the late boost from Rehn, who wouldn’t rule out the possibility of including equities in a new QE program, are catching up with the new boost for stimulus hopes. The GER30 is up 0.88%, and the UK100, which opened late after a technical glitch delayed trading, is posting a 0.8% gain.
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Stuart Cowell
Head Market Analyst
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