Wild volatility in metals trading

FXstreet.com (Chicago) – Gold fell throughout the weekend as Syrian tensions cooled down after President Obama appealed to the Congress before military strike against Syria.

On a political move that some worship while others criticize, Obama announced he will seek lawmakers’ support before any military action in the Middle East. Losing one of its major allies, the UK, seem to have weighted on the usual American style to approach international threats. The NATO communicated to the world that a clear and “dangerous signal to dictators” was implied if there was not a firm response to alleged chemical attacks by the Syrian government. After the UN stated at least two weeks were necessary to confirm the use of chemicals in the civilians’ attack, market participants dragged down gold prices that were cushioned by Chinese manufacturing data.

Gold trades at $1391.50 to accumulate 4.60% losses so far with highs at $1,398.50 and lows at $1,373.60. In contrast, silver is up 063% and trades back above $24 at $24.15 with highs at $24.42 and lows at $23.11. Platinum is down 5.80% after bouncing off $1.512.90 lows and retracing from $1.534.80 to trade at $1.521.30 at the moment. Copper is up 0.0575% and trades at $3.2905 after declining from $3.3105 highs and bouncing off $3.2450 lows. Finally, palladium is 8.30% down and trades at $715.55 recovering from $714.25 lows and after reaching $731.75 highs.

Flash: Short EUR/USD, break below 1.3144 further confirmation - JPM

Following the strong break above 81.631 (200 DMA) in the USD Index, which came combined with the break below 1.3206/1.3190 (pivots) in EUR/USD last week, according to Meera Chandan, FX Strategist at JPMorgan, "the odds are now clearly in favour of continued USD strength which would receive additional confirmation via breaks below 1.3144 (200 DMA)." Chandan thinks that "only breaks above 1.3264 (minor 38.2 %) would temporarily weaken the strong USD view."
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