Gold Trades below $1,200

On Wednesday, the Sterling pound rose vs. a basket of major currencies on receding fears of a 'Hard Brexit” after the UK Supreme Court decided that the UK government must seek a vote in parliament before starting the “Brexit” process.
Cable was also affected by Friday's meeting between Theresa May and Donald Trump, as they will hold talks over a US-UK trade deal. In this regard, Mrs May said, her goal is to build on the historic relationship between the two nations, underpinned by their shared values and common interests.

Today, the Sterling pound awaits the UK GDP report for Q4, amid fears due to weak retail sales figures. GBP rose as much as 1% vs. USD and settled at $1.26. 

Technically, cable could hit $1.27 and 1.28, in anticipation of Friday's meeting between Britain's prime minister and U.S. president.

The U.S. dollar index fell slightly yesterday and settled above 100 pips.

Gold prices fell as much as 1% and settled below $1,200, negatively affected by receding fears of a 'Hard Brexit. Technically, the yellow metal could re-test levels of $1,200 during the day.

Oil prices fell as much as 0.5% yesterday, after reports showed increasing U.S. crude inventories and gasoline stocks increased sharply. U.S. crude prices are still hovering at $52.60 and could trade sideways, as the U.S. shale output is rising and OPEC is cutting.

The most important economic events:

  • GBP Gross Domestic Product (YoY) (4Q A): (GMT 11:30) – Important – Forecast (2.1%) – Previous (2.2%).
  • USD Advance Goods Trade Balance (DEC): (GMT 13:30) – Important – Forecast (-$64.4b) – Previous (-$65.3b).

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. Read More
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