The risk-off sentiment could gather more momentum this week ahead of U.S. Secretary of State Rex Tillerson's visit to Moscow which has become mainly to convince the Russian side to stop supporting of Syrian President Bashar al-Assad’s regime as he said in Italy during the foreign ministers meeting of G7 in Italy.
This visit comes following series of aggressive jawboning between the 2 sides, after chemical attack against civilians in Syria drove Trump to take a military reaction against the Syrian government.
Before taking his military reaction, Trump said that "Assad has crossed the red line and all the lines"!
During this week in an accompanied responding Russia and Iran said that US has crossed the Red Line by its illegal military reaction which came without investigation reminding the world by its military attack against Iraq in 2003 for fake chemical weapons existence in Iraq.
The new US administration has indicated this week too before this visit that there could be also reaction against the exploding barrels randomized using in Syria against civilians, after last week US missiles attack on Syrian airbases.
Russia said that there could be targeting of the south of Damascus by US.
The markets are still evaluating the consequences which can result from this conflict, while most expectations are still referring to avoiding of direct clashes between the US troops and the Russian troops in Syria anyway.
Trump's reaction has been welcomed by EU, UK , Turkey, Persian gulf Arab countries and the Syrian opposition militias which are looking for longer hitting of the governmental targets.
The situation in the far east is looking also escalating between US and North Korea, after Trump's message on Twitter that "US would solve the problem with North Korea with or without China"
US has moved also naval warships from Australia not to Japan sea but to South Korea directly which means that it is taking attacking position.
I should mention here that Trump winning of the presidency in US on last Nov. 9 has been read as good news for Gold "for his aggressive reactions" and bad of the US dollar "for his criticism of its value" and that what has been materialized later.
The Gold rose to $1336.33 per ounce following his winning of the presidency, before coming down to $1122.85 on the reflation optimism and the higher interest rate outlook in US.
The current dovish market sentiment drove the US treasuries yields down placing US 10 Year note yield below 1.30% on increasing safe haven demand for treasuries.
The Yen as a low yield financing currency could be supported across the broad on usual unwinding of carry trades putting more pressure on Nikkei 225 which is already depressed by the US equities losses.
The Gold could reach in the beginning of today Asian session $1276.30, after yesterday surpass of $1270.50 which stopped it last Friday following the dovish release of Mar US non-farm payrolls which have shown adding only 98k of jobs, while the consensus was referring to gaining 180k.
The gold which could contain its falling to $1195.80 has become underpinned technically further by getting over its daily SMA200, after surpassing its peak at $1263.83 which has been formed during a meeting with this average on last Feb. 27.
The gold is now in its second day of being above its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today $1247.10.
After forming another higher low at $1239.68 above its low at $1195.80 which has come after forming a higher bottom on last Jan. 27 at $1180.53 to come by its turn above its previously formed bottom on last Dec. 15 at $1122.85.
XAUUSD daily RSI-14 is referring now to existence inside its overbought area above 70 reading 70.657.
XAUUSD daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now also its main line in its overbought region above 80 at 80.102 leading to the upside its signal line which is still existing in the neutral region at 62.183.
Important levels: Daily SMA50 @ $1237.68, Daily SMA100 @ $1206.71 and Daily SMA200 @ $1257.44
S&R:
S3: $1239.68
S2: $1195.80
S3: $1180.86
R1: $1292.87
R2: $1336.53
R3: $1345.50
Have a good day
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
This visit comes following series of aggressive jawboning between the 2 sides, after chemical attack against civilians in Syria drove Trump to take a military reaction against the Syrian government.
Before taking his military reaction, Trump said that "Assad has crossed the red line and all the lines"!
During this week in an accompanied responding Russia and Iran said that US has crossed the Red Line by its illegal military reaction which came without investigation reminding the world by its military attack against Iraq in 2003 for fake chemical weapons existence in Iraq.
The new US administration has indicated this week too before this visit that there could be also reaction against the exploding barrels randomized using in Syria against civilians, after last week US missiles attack on Syrian airbases.
Russia said that there could be targeting of the south of Damascus by US.
The markets are still evaluating the consequences which can result from this conflict, while most expectations are still referring to avoiding of direct clashes between the US troops and the Russian troops in Syria anyway.
Trump's reaction has been welcomed by EU, UK , Turkey, Persian gulf Arab countries and the Syrian opposition militias which are looking for longer hitting of the governmental targets.
The situation in the far east is looking also escalating between US and North Korea, after Trump's message on Twitter that "US would solve the problem with North Korea with or without China"
US has moved also naval warships from Australia not to Japan sea but to South Korea directly which means that it is taking attacking position.
I should mention here that Trump winning of the presidency in US on last Nov. 9 has been read as good news for Gold "for his aggressive reactions" and bad of the US dollar "for his criticism of its value" and that what has been materialized later.
The Gold rose to $1336.33 per ounce following his winning of the presidency, before coming down to $1122.85 on the reflation optimism and the higher interest rate outlook in US.
The current dovish market sentiment drove the US treasuries yields down placing US 10 Year note yield below 1.30% on increasing safe haven demand for treasuries.
The Yen as a low yield financing currency could be supported across the broad on usual unwinding of carry trades putting more pressure on Nikkei 225 which is already depressed by the US equities losses.
The Gold could reach in the beginning of today Asian session $1276.30, after yesterday surpass of $1270.50 which stopped it last Friday following the dovish release of Mar US non-farm payrolls which have shown adding only 98k of jobs, while the consensus was referring to gaining 180k.
The gold which could contain its falling to $1195.80 has become underpinned technically further by getting over its daily SMA200, after surpassing its peak at $1263.83 which has been formed during a meeting with this average on last Feb. 27.
The gold is now in its second day of being above its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today $1247.10.
After forming another higher low at $1239.68 above its low at $1195.80 which has come after forming a higher bottom on last Jan. 27 at $1180.53 to come by its turn above its previously formed bottom on last Dec. 15 at $1122.85.
XAUUSD daily RSI-14 is referring now to existence inside its overbought area above 70 reading 70.657.
XAUUSD daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now also its main line in its overbought region above 80 at 80.102 leading to the upside its signal line which is still existing in the neutral region at 62.183.
Important levels: Daily SMA50 @ $1237.68, Daily SMA100 @ $1206.71 and Daily SMA200 @ $1257.44
S&R:
S3: $1239.68
S2: $1195.80
S3: $1180.86
R1: $1292.87
R2: $1336.53
R3: $1345.50
Have a good day
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
12th April 2017 - Safe haven resurgent demand, before Tillerson's Moscow visit
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