Article By RoboForex.com
Gold has been in a downward trend since the US elections, losing 10% since the 9th of November. The reason for the weakness is the strength of the USD, which has gained +6% against the Euro since Donald Trump was elected. The gains against the Yen is even higher at +11%. The higher USD therefore increases the gold price in other currencies. Donald Trump promises tax relief and economic stimulus programs, this raises fears of inflation and higher interest rates. Good current economic data support these expectations. Additionally, many investors bought gold ahead of the elections, to hedge against market turbulences. As the market remains calm relatively calm after the elections, the hedges were sold. Investors who have a midterm view, are using these levels to buy.
The DAX is in a sideways trend. Resistance is at 10820, support at 10250.
The Euro is in a downward trend.
The USD is in an upward trend
Gold in a downward trend
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WTI Oil is in an upward trend
Yesterday´s Thanksgiving bank holiday saw US markets closed. In response, German stocks traded quietly. The DAX closed up 0.25% in quiet trade, not managing to break out to the upside. Yesterday´s German economic data gave no new impulses, GDP met analyst´s expectations at +1.7%. The current IFO numbers came in slightly better than expected, yet the outlook was weaker than expected. Asian markets trade up this morning. The Euro gains slightly to the USD, the yen is unchanged. Gold and WTI Oil trade lower.
RoboForex Analytical Department
Article By RoboForex.com
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