Gold above $ 1200 handle

During the past two weeks gold suffered from the rising expectations that Fed could soon increase interest rates and the stronger US dollar. Yesterday the closing price settled to three and a half month low at $ 1207 and is on track to mark the largest monthly decline since November 2015. Yesterdays also was hit the lowest level since February 17 at $ 1199.60.

Today gold is slightly relieved because of the Asian markets fluctuation. In the morning the yellow metal conquered the psychological $ 1200 handle and reached $1214.60.

Bulls might be flashed in case of breaking above $ 1218 level, where is located the major resistance, which is acting as 100-day EMA. Looking downwards key support is seen at $ 1190 (55-day EMA).

European stocks moved in green despite thin volumes

European stocks started the new week with good gains, marking fifth consecutive positive trading session. As stock exchanges in UK and US remained closed throughout the day and macro agenda offers nothing special, the trading volume was significantly lower.
The attention of market players this week will be mainly focused on the forthcoming data on US unemployment rate and the change in non-farm payrolls as well as ECB meeting on Thursday.
During the last trading session German’s DAX 30 index added 0.46% to finish at 10 333.23, while the French CAC 40 index increased 0.32% to 4 529.40 and the pan-European Euro Stoxx 50 index rose 0.43% to 3,088.50.
Among the best performers that moved DAX 30 up are Volkswagen AG, Daimler AG and Bayer AG, as their shares rose respectively by 1.70%, 1.52% and 1.30%. On the downside with biggest daily losses rolled Thyssenkrupp AG, Siemens AG and Deutsche Post AG downgrading market capitalization respectively with 0.38%, 0.34% and 0.13%.

GBP/USD

During the last week GBP/USD performed tentatively and showed lack of strength.
The pair attempted to rise higher, slipping above the key resistance at 1.4700, but failed to make a clear break upside and closed lower at 1.4604. 

Currently the descending momentum prevails and bears are likely to test 1.4500. Immediate resistance is seen at 1.4650, followed by 1.4740, which is the 200-day moving average. 

Looking at the upside, any indicative break above and eventual daily close above 1.47 would awake the bulls and the pair might push towards 1.5000 level.

Crude oil pressured by the strong US dollar

Crude oil prices are moving downwards after both benchmarks WTI and Brent reached the psychological level at $50.00 per barrel for first time since respectively October and November last year. The appreciation of "black gold" could be considered by the Fed as another sign for economy improvement in global aspect, that could support the eventual increase in interest rates in the US in June.  The appreciation itself would hardly be a determining factor in the decision of the central bankers, but that in turn would affect the levels of inflation in the country. Although it is not expected significant reduction of production levels, investors are awaiting the OPEC meeting on Thursday in Vienna, which outcome would impact on quotations of the crude oil.

Today oil prices still suffer from the stronger US dollar, though it was slightly supported by the beginning of the summer season in the US, which coincides with the US crude production decline to its lowest level since September 2014.

Today's trend is a continuation of the market situation from the end of last week. In the morning WTI slipped with 12 cents to trade at $49.21 and Brent fell with 21 cents to $49.11.

On Wednesday will be released the data by the American Petrolium Institute and on Thursday is due the official government data. And ahead of the OPEC meeting, this week will bring increased volatility on markets. 

Gold, pressure, adrenalina

Since the beginning of the year we witnessed a brilliant golden performance. Up ahead in the distance a shimmering light embraced first quarter and shined through the amazing 15.8% increase.

Last December gold was knocked down, reaching $1050, but quickly recovered and pinned new highs at $1282 in February and $1305 in April.

From technical viewpoint the February rally significantly pushed the price up and set bears calm, as they have been at large for the last two and a half years.

But the fundamental aspect caught traders in a landslide, facing a silhouette of bewilderment, as US economy strongly blows the wind of change. Fed’s rate hike definitely sube la adrenalina.

The sense of a suspense shivered and shadowed. So now gold walks the empty street on the boulevard of broken dreams. The restless stream is now caught up within the sound of silence.

Currently gold prices are under huge selling pressure during the last six sessions.  

The strong support located at the 55-day EMA was conquered and gold split the doubts that for shortly could move up, even hit intraday high at $1234.30. In elevated perspective, the resistance is planted in $1250.00 level and a vision of softly creeping breakout could lead the price towards $1265.00. A step back is very likely to support-turned-resistance at $1243.00.The short term rally could bring some small profits, but gold will loudly break the sound of silence in the long term run.

European stocks closed with strong gains

Since the beginning of the month, European stocks closed significantly elevated and pinned the best performance, despite opening in red on Tuesday.

The British FTSE 100 was up with 1.35% to 6219.26 points, the French CAC 40 leaped 2.46% to 4431.52 points and Euro Stoxx 50 jumped 2.76% to 3013.84 points. Best performed the Italian FTSE MIB with a growth of 3.34% to 17,903.97 points.

Germany’s  DAX climbed 2.33% to finish at 10,057.94 points and marked one-week high at 10,077.50

Technically speaking the index failed to break resistance at 11400 points and now gravitates within the range 9300-11400. Next resistance on upwards is the psychological level at 11700, where it is not excluded a false breakout. Even bulls are seen in a sluggish pace now, the uptrend is still in place. Eventual downward correction would lead the price to support levels located at 10000, 9300 and 8900.

US stocks strongly uplifted

US stocks recorded strong gains on Tuesday, influenced by the excellent performance of US new home sales in April. 

New home sales surprised with 16.6% jump and thus reached levels not seen from 2008.

Cheered by the news bulls favored the major indices. Dow Jones climbed 1.22% to 17,706.05 points, S&P 500 is up by 1.37% to 2076.06 points and Nasdaq closed higher with 2% to 4861.05 points.

Among the news of the day was the future cooperation of Red Bull with GoPro. Shares of GoPro rose 4.86 % after the news release to 9.71 dollars per share. Technological and financial sector performed best within S& P500. Shares of Visa leaped 2.81% to 79.38 dollars, Morgan Stanley marked a growth of 2.16% and JPM pushed up with 1.7%. 

Technically speaking S&P 500 is extending its upward movement, supported by the liquidity inflows in the economy. The strong rally settled the price above 1900 level. The next resistance is located at the psychological level at 2130. In case of reversal, key support levels might be seen at 1970, 1915 and 1870.