Gold Prices Surge as Fed Rate Hike Cycle Pauses – Bullish Week Ahead for Precious Metals.

Welcome to our exclusive financial insights! In this article, we will be your guide to the most critical events shaping the global financial landscape. As a seasoned investor, you understand that staying ahead of the curve is paramount to success in the ever-evolving world of finance.

The upcoming week is packed with significant economic events that can have far-reaching implications for various markets. From central bank decisions that can impact currency valuations to corporate earnings reports that may sway stock prices, each event holds the potential to create both opportunities and challenges for investors.

First on our radar is the European Central Bank’s (ECB) interest rate decision scheduled for July 27, 2023. Traders around the world will closely monitor this announcement as it influences the strength of the GBP and its subsequent pairs. A stronger-than-expected decision could boost the EUR, while a weaker one might signal a bearish outlook.

Next up is the Federal Open Market Committee’s (FOMC) interest rate decision on July 26, 2023, which will impact the USD and its related pairs. As short-term interest rates significantly influence currency valuations, investors will be keenly observing this event for potential bullish or bearish signals in the USD.

The Consumer Price Index (CPI) report for Q2 in Australia is another critical event scheduled for July 26, 2023. The CPI measures changes in the prices of consumer goods and services, making it vital for maintaining price stability. A stronger reading can support the AUD, while a weaker one may signal a bearish outlook.

On July 28, 2023, the Bank of Japan will release its Monetary Policy Statement, containing crucial information on asset purchases and the economic conditions influencing their decisions. This statement can significantly impact the JPY and its related pairs.

Finally, on July 25, 2023, Manufacturing Sales data from Canada will be released, reflecting changes in the value of sales made by manufacturers across the country. This event can have an impact on the CAD and its subsequent pairs.

Beyond these central events, we will also explore the upcoming quarterly results announcements for major corporations like Microsoft Corp., Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., and McDonald’s Corporation. These reports can sway stock prices and create both short-term trading opportunities and long-term investment prospects.

Additionally, we will examine the trends and potential trade suggestions for the top commodities, cryptocurrencies, and currencies in the coming week.

5 Key Events to Watch Out

ECB Interest Rate Decision (Jul) U.K.

WHEN: 27 JULY 2023 WHAT IT INFLUENCES: GBP and its subsequent pairs

WHAT’S HAPPENING: The European Central Bank publishes its decision on where to set the benchmark interest rate. Traders closely watch interest rate changes as they significantly impact currency valuation. A stronger-than-forecast reading is generally bullish for the EUR, while a weaker-than-forecast reading is bearish.

Fed Interest Rate Decision, U.S.

WHEN: 26 JULY 2023 WHAT IT INFLUENCES: USD and its subsequent pairs

WHAT’S HAPPENING: The Federal Open Market Committee (FOMC) members vote on the target interest rate. Currency valuation is affected by relative short-term interest rates. A reading stronger than forecast is generally supportive (bullish) for the USD, while a weaker than forecast reading is negative (bearish).

CPI (QoQ) (Q2), AUD

WHEN: 26 JULY 2023 WHAT IT INFLUENCES: AUD and its subsequent pairs

WHAT’S HAPPENING: The Consumer Price Index (CPI) measures the change in the prices of goods and services in a consumer basket. The Central Bank closely observes this figure for maintaining price stability. A stronger-than-forecast reading is generally bullish for the AUD, while a weaker-than-forecast reading is bearish.

BoJ Monetary Policy Statement, JPY

WHEN: 28 JULY 2023 WHAT IT INFLUENCES: JPY and its subsequent pairs

WHAT’S HAPPENING: Bank of Japan’s Monetary Policy Statement reveals their decision on asset purchases and economic conditions influencing the decision. Traders keep a close eye on this statement.

Manufacturing Sales (MoM), CAD

WHEN: 25 JULY 2023 WHAT IT INFLUENCES: CAD and its subsequent pairs

WHAT’S HAPPENING: Manufacturing Sales reports the change in the value of sales made by manufacturers across Canada. A stronger-than-forecast reading is generally supportive (bullish) for the CAD, while a weaker-than-forecast reading is bearish.

Equities in the Coming Week

MICROSOFT CORP. (MSFT) Quarterly Results

WHEN: 25 JULY 2023 EPS: $2.55 per share Revenue: $55.468B

ALPHABET INC (GOOG) Quarterly Results

WHEN: 25 JULY 2023 EPS: $1.34 per share Revenue: $72.836B

AMAZON.COM INC. (AMZN) Quarterly Results

WHEN: 27 JULY 2023 EPS: $0.35 per share Revenue: $131.449B

META PLATFORMS, INC. (META) Quarterly Results

WHEN: 26 JULY 2023 EPS: $2.91 per share Revenue: $31.083B

MCDONALD’S CORPORATION (MCD) Quarterly Results

WHEN: 27 JULY 2023 EPS: $2.78 per share Revenue: $6.295B

Top Commodities in the Coming Week

GOLD

GOLD is trading in an up channel, indicating a potential upside in the coming days. The RSI is at 56.29, in the neutral zone. The MACD also signals positivity, with lines crossing in the positive zone. Bollinger Bands suggest low volatility. Watch the key levels:

• Support: $1953.10
• Resistance: $1978.13

Trade Suggestion: Enter at $1987.92, Take Profit at $2018.73, Stop Loss at $1966.10

SILVER

SILVER is trading in an up channel, indicating a potential upside in the coming days. The RSI is at 60.31, bullish, and the MACD signals a positive crossover. Bollinger Bands indicate high volatility. Key levels to watch:

• Support: $24.31 per ounce
• Resistance: $24.89 per ounce

Trade Suggestion: Enter at $25.15, Take Profit at $25.89, Stop Loss at $24.60

BRENT CRUDE OIL

BRENT CRUDE OIL is trading in an up channel, suggesting a potential upside. The RSI is at 61.5, bullish, and the MACD indicates a neutral crossover. Bollinger Bands suggest low volatility. Key levels:

• Support: $78.36
• Resistance: $81.43

Trade Suggestion: Enter at $82.78, Take Profit at $85.13, Stop Loss at $81.25

Top Crypto in the Coming Week

BTCUSD

BTCUSD is trading in an up channel, indicating potential upside. The RSI is at 49.7, bullish, while the MACD signals a bearish crossover. Bollinger Bands show low volatility. Watch these levels:

• Support: $29,836.07
• Resistance: $30,511.99

Trade Suggestion: Enter at $30,855.08, Take Profit at $31,571.97, Stop Loss at $30,322.53

LITECOIN

LITECOIN is trading in a down channel, suggesting a potential downside. The RSI is at 50.4, bullish, while the MACD signals a bearish crossover. Bollinger Bands indicate high volatility. Key levels:

• Support: $92.24
• Resistance: $96.48

Trade Suggestion: Enter at $89.55, Take Profit at $82.87, Stop Loss at $94.85

Top Currency in the Coming Week

EURUSD

EURUSD is trading in an up channel, suggesting a potential upside. The RSI is at 60.67, bullish, and the MACD indicates a positive crossover. Bollinger Bands suggest high volatility. Key levels:

• Support: 1.1095
• Resistance: 1.1142

Trade Suggestion: Enter at 1.1162, Take Profit at 1.1228, Stop Loss at 1.1117

GBPUSD

GBPUSD is trading in an up channel, suggesting a potential upside. The RSI is at 52.81, bullish, and the MACD indicates a neutral crossover. Bollinger Bands show high volatility. Key levels:

• Support: 1.2818
• Resistance: 1.2912

Trade Suggestion: Enter at 1.2932, Take Profit at 1.3039, Stop Loss at 1.2861

AUDUSD

AUDUSD is trading in an upside channel, suggesting a potential downside. The RSI is at 49.6, neutral, and the MACD indicates a neutral crossover. Bollinger Bands suggest high volatility. Key levels:

• Support: 0.6693
• Resistance: 0.6747

Trade Suggestion: Enter at 0.6785, Take Profit at 0.6880, Stop Loss at 0.6713

Top Index in the Coming Week

DOW JONES

DOW JONES is trading in an up channel, indicating a potential upside. The RSI is at 71.19, bullish, and the MACD indicates a positive crossover. Bollinger Bands suggest low volatility. Key levels:

• Support: 35274.69
• Resistance: 35420.67

Trade Suggestion: Enter at 35546.69, Take Profit at 35776.09, Stop Loss at 35356.95

FTSE 100

FTSE 100 is trading in an up channel, indicating a potential upside. The RSI is at 64.58, bullish, and the MACD indicates a positive crossover. Bollinger Bands suggest high volatility. Key levels:

• Support: 7621.6
• Resistance: 7680.7

Trade Suggestion: Enter at 7709.4, Take Profit at 7797.1, Stop Loss at 7638.6

Market Recap: Gold Prices on the Rise as Fed Bets Pause

Introduction

In this market recap, we’ll delve into the recent developments that have influenced the prices of gold, crude oil, bitcoin, and several currency pairs. The past week has seen noteworthy shifts in these markets, impacting investors and traders worldwide.

Gold Prices Surge on Speculation of Fed Rate Hike Pause

What Influenced Gold Prices?

The prospect of the Federal Reserve concluding its rate hike cycle led to growing speculation among investors, causing gold prices to surge. This upward trend was anticipated to continue through the week.

The Impact of a Weaker Dollar

While the dollar experienced a bounce back from 15-month lows during the week, commodities priced in the US currency, including gold, benefited from a weaker dollar, encouraging investment in the precious metal.

Technical Analysis: Down Channel for GOLD

Analyzing the charts, experts identified a down-channel pattern for gold, suggesting a potential downside in the coming days.

Crude Oil Continues Fourth Consecutive Weekly Rise

What Influenced Crude Oil Prices?

Mounting signs of supply constraints in the upcoming months and escalating tensions between Russia and Ukraine, which could further disrupt supplies, contributed to the increase in oil prices. As a result, crude oil recorded its fourth consecutive weekly gain.

Weekly Performance of Brent and WTI Crude

Brent oil futures witnessed a weekly gain of almost 1.2%, closing at $81.07 per barrel. Simultaneously, US West Texas Intermediate (WTI) crude finished $1.42, or 1.9%, higher than its previous closing price. WTI also achieved a weekly gain of nearly 2%.

Analysts’ Views: A Looming Supply Crunch

Industry analysts, like Phil Flynn from Price Futures Group, noted that the oil market is slowly pricing in the possibility of a supply crunch.

Technical Analysis: Up Channel for WTI CRUDE OIL

Technical indicators suggested an up-channel pattern for WTI crude oil, hinting at potential upside movements in the coming days.

Bitcoin Faces Minor Decline Amidst Ongoing Excitement

What Influenced the Cryptocurrency Market?

Over the past 24 hours, the cryptocurrency market experienced a slight decline of 0.3%, reaching a total valuation of $1.2 trillion.

Bitcoin Mining Ecosystem’s Phenomenal Growth

The Bitcoin mining ecosystem had an exciting year in the second quarter of 2023, making a staggering $184 million from transaction fees. This surpassed the previous year’s total, mainly due to the recovery in Bitcoin prices and the growing popularity of BRC-20 tokens.

Miners Grapple with Bear Market Challenges

As the cryptocurrency sector continues to recover from a prolonged bear market, miners are facing financial pressures. They have been selling mined BTC to cover operational expenses and secure earnings. In June 2023, miners transferred a record $128 million worth of Bitcoin to exchanges.

Technical Analysis: Up Channel for Bitcoin

Technical charts indicated an up-channel pattern for Bitcoin, suggesting potential upside movements in the near future.

Economic Indicators and Currency Pairs

CPI (YoY) (Jun), EUR

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) measures the price changes of consumer goods and services. Central banks closely monitor this figure to maintain price stability.

Impact on EURGBP

The EURGBP currency pair was affected by the CPI report, exhibiting an upward channel pattern, indicating the likelihood of further upside movements in the coming week.

Core Retail Sales (MoM) (Jun), U.S.

What are Core Retail Sales?

Core Retail Sales represent the change in the total value of retail sales in the U.S., excluding automobile sales. It serves as a critical indicator of consumer spending, which significantly impacts the US GDP.

Impact on USDZAR

The USDZAR currency pair showed an upward channel pattern after the Core Retail Sales report, suggesting possible future uptrends in the upcoming week.

Employment Change (Jun), AUD

What is Employment Change?

Employment Change indicates the variation in the number of employed individuals across Australia. It plays a crucial role in influencing consumer spending.

Impact on AUDUSD

The AUDUSD currency pair demonstrated a downward channel pattern after the Employment Change report, hinting at potential downside movements in the coming week.

Conclusion

In the past week, the financial markets experienced significant movements, driven by factors such as central bank actions, supply constraints, and geopolitical tensions. Gold prices soared on expectations of a paused rate hike cycle, while crude oil marked its fourth consecutive weekly gain amid supply concerns. Meanwhile, the cryptocurrency market experienced a minor decline, and economic indicators impacted various currency pairs. As investors and traders prepare for the upcoming week, it is essential to stay vigilant and consider these market dynamics when making decisions.