Precious metal bears got caught off guard as everything shot up. Why?
We are always telling Gold traders that they need to watch the fundamentals before the technicals as anything can happen.
Today the price of Gold shot up due to several factors:
1. The sudden death of Iran’s president in a helicopter crash is a geopolitical event.
2. Tensions in Gaza continue.
3. Jerome Powell, who now has COVID, said last week that there would be no Interest Rate hikes coming soon.
4. China is desperately trying to stabilize its troubled real estate market sending investors to gold as a safe haven.
This caused silver, platinum and copper to rise as well.
NZD is our strongest currency right now and the only technical opportunity we see is a potential short on AUDNZD.
We see price action reaching the upper trend line in this bearish channel and the stochastic oscillator in overbought territory.
Also, on Wednesday, the RBNZ will announce its latest Interest Rate and Monetary Policy Statement.
There may be no change predicted but these always cause volatility.
Also, watch out for Wednesday’s UK CPI inflation numbers.
GBP is strong against most other currencies (except AUD and NZD) but if inflation is coming under control, we may see a dip in the pound.
That’s all for now.