Gold extending gains
Gold in Asia on Monday, continuing last week’s gains as a result of the agreed voting Brexit Britain to leave the EU, investors are waiting for the next cue and step by Britain and the policy response may be the Japanese who have seen the yen soared in response to demand for safe-haven.
Gold for August delivery on the Comex division of the New York Mercantile Exchange gained 0.93% to $ 1,224.65 per troy ounce. Silver futures up 0.54% to $ 17.910 per troy ounce, while copper decreased by 0.38% to $ 2.108 per pound.
In the next few weeks, market volatility is expected to remain high after global stocks saw more than $ 2 trillion removed from their value on Friday and the pound fell as much as 10% amid the impact of noise Brexit.
Federal Reserve Chairman Janet Yellen spoke at a conference in Portugal the ECB’s central bank on Wednesday, with investors looking for an indication of how Brexit will change the US economic outlook and the interest rate channel.
Last week, gold prices rallied to a two-year high on Friday after a surprise voting England which led out of the European Union sent investors flooding bullion and safe-haven assets more, hitting a peak of $ 1,358.20 for the biggest one-day gain since September 2013 and the highest close since August 2014 after Britain voted by nearly 52% compared with 48% on Thursday to break away from the largest trading bloc in the world.
The precious metal is up nearly 25% for the year to date, driven by concerns over global growth and the application of negative interest rates by the central bank.
Gold has also been boosted as the Federal Reserve cut its forecast for the amount of interest rate increases that are planned for this year.
Lower interest rates tend to help gold, as the metal pays its holder does not exist, but it struggled to compete with yield-bearing investments when interest rates rise.
Technically
Resistance: 1266.40 1266.78 1269.75 High / Low: 1315.15 / 1259.34
Support: 1260.95 1260.52 1257.60 Running Price: 1265.55
Comment: For intraday trade today suggest Buy at 1272.85; stop loss at 1266.70; target at 1286.50.
Yen strengthened in the market
The yen rose slightly in early Asian session on Monday as Japanese policymakers assess what further steps were taken in the financial markets, while the pound and the euro fell continuation of the reaction last week following voting U.K. to leave the EU.
USD / JPY was changing hands at 102.16, down 0.07%, while the AUD / USD was trading at 0.7429, down 0.46%. GBP / USD down 1.80% to 1.3434 and EUR / USD down 0.73% to 1.1036.
The US dollar index was last quoted at 95.63
In New Zealand, the trade balance showed a surplus of NZ $ 358 million in May month-on-month, well above the surplus of NZ $ 164 million views, with figures year-on-year on a deficit of NZ $ 363 million, almost the same as the previous month.
NZD / USD was trading at 0.7089, down 0.63% after the data ..
Last week, the pound fell on Friday, suffering its biggest one-day decline in the sales of most big action in history; while the dollar and the yen surged as a surprise U.K. out of the EU resonates throughout the global market.
British Prime Minister David Cameron, who has supported the UK persists in Europe, resigned after the final referendum results were announced. Voting can lead to rupture of the UK, with Scotland which is now very likely to hold a referendum on independence came out of Great Britain.
GBP / USD hit 1.3616 late Friday, down 8% for the day, after earlier falling as low as 1.3228, the weakest level since the middle of 1985. It was the worst day for the pound since the currency devaluation in 1967.
The pound found some support after the Bank of England announced it is ready to pump £ 250 billion to help smooth the market, said it would take “all necessary measures” to ensure monetary and financial stability.
Bank of England Governor Mark Carney said the BoE will consider in the coming weeks whether to take additional policy responses. The central banks of the G7 group also said in a joint statement that they were ready to provide additional liquidity to the market as needed.
The euro fell 2.3% against the dollar on Friday, with EUR / USD at 1.1120 late Friday. The yen rose against the dollar, with USD / JPY hit lows of 99.03, last seen in November 2013.
Technically
Resistance: 105.21 105.80 105.92 High / Low: 103.06 / 101.06
Support: Running 104.00 104.32 104.84 Price: 102.03
Comment: For intraday trade today suggest sell at 101.90; stop loss at 102.60; target at 101.15.
American Stock Exchange index decreased
Stocks ended down more than 3 percent from the end of trading last week, on Friday in the US, as the biggest drop so far this year after a surprise decision by the UK to leave the EU.
Britain has decided to leave the EU, forcing the resignation of Prime Minister David Cameron, became the biggest blow to project greater European unity since World War II.
Global financial markets fell as a result of the referendum on Thursday showed superior sound Brexit 52 percent vs. 48 percent of the vote Bremain.
The Dow Jones Industrial Average closed down 610 points – the eighth largest decline ever – with Goldman Sachs highest contributing to the decline. The Dow and S & P had their worst day since August 2015, while the Nasdaq composite index 4.1 percent decline was the worst index since August 2011.
With the decline Friday, both the Dow and the S & P abolish their gains for the year so far. The Nasdaq index fell nearly 6 percent lower on an annual basis.
Financial sector fell 5.4 per cent on their worst day since August 2011, causing nine sectors were lower than the S & P 500.
Investors are taking a defensive posture with the utility sector as the only advanced in the S & P sectors. The trading volume was the highest of the year so far.
The price of US crude oil futures ended down $ 2.47, or 4.93 percent, at $ 47.64 per barrel.
The pound fell more than 10 percent against the US dollar between a high of $ 1.500 touched lows $ 1.3224 late Thursday, the lowest since 1985. Last Sterling near $ 1.366.
Global stocks fell, with the Nikkei 225 fell nearly 8 percent. Germany’s DAX closed down 6.8 percent for the worst day since November 2008.
The STOXX Europe 600 Banks Index had its worst day on record (back to 1987) with a decrease of more than 14 percent, to end more than 40 percent below the 52-week intraday high. The index lost 6.15 percent for the week, the worst since early May.
Britain’s FTSE 100 closed 2.76 percent lower on Friday the worst day since January but held almost weekly gain of 2.4 percent.
Technically
Resistance: 17790 17843 17 884 High / Low: 17827/17675
Support: 17732 17703 17 667 Running Price: 17 718
Comment: For intraday trade today suggest sell at 17700; stop loss at 17 780; target at 17 620.
