Daily Review for February 5, 2021
Gold suffers significant losses and we could see further declines if the NFP data and the US unemployment rate surprise the market
Silver has attracted speculators’ interest and they are starting to buy at the current level as they await for the NFP data
US stock indices continue to rise after yesterday’s rally. The S&P500 is in an upward channel, looking for a new all-time high
The DAX overcame the 14,000 resistance and the Bulls mark the new target at 14,200 points
| GOLD +0.42% |
| Finally, gold prices failed to resist the 1,820 support. The lower jobless claims in the U.S., boosted the stock market, and with it, the fall of gold to the current level of 1,798. Today, traders are watching the NFP data in the US. The forecast is 50,000 and economists expect the unemployment rate to remain unchanged at 6.7%. On the other hand, the market is starting to worry about the delay in the execution of the stimulus plan in the US. |
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| Support 1: 1,796.14 Support 2: 1,795.17 Support 3: 1,794.19 Resistance 1: 1,798.09 Resistance 2: 1,799.07 Resistance 3: 1,800.04 Pivot Point: 1,797.12 |
| Expected trading range between 1,794 and 1,800. Pivot point at 1,797. Price is currently above the 1,787 support. If the unemployment data and the NFP is better than expected, the price of gold could fall to the 1,750 support. |
| SILVER +1.49% |
| Silver price is recovering a few points from this week’s fall. It is currently up 1.49% and is trading at USD$26.61. According to data from the CFTC (Commodities Futures Trading Commission), the volatility of silver this week was not caused by retail traders. It was caused by heavy buying and selling positions by Banks and Hedge Funds, who are the largest holders of open positions in silver. Accordingly, silver has come to play a more important role than gold for hedging and speculation in portfolios. |
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| Support 1: 26.459 Support 2: 26.357 Support 3: 26.284 Resistance 1: 26.634 Resistance 2: 26.707 Resistance 3: 26.809 Pivot Point: 26.532 |
| We could see long positions in silver during part of the European session, ahead of the NFP announcement and the US unemployment rate data. Silver has already found the support at which it has been trading since the beginning of the year. The Ichimoku cloud projects the price towards 26.91. If it achieves this rise, and a significant buying volume is achieved, the price could reach 28. |
| S&P500 +0.20% |
| Yesterday, Wall Street indexes hit record highs on the back of lower jobless claims in the US. The S&P500, which represents more clearly the performance of the US economy, reached 3,881 points. In Asia, Wall Street futures continued to rise, and the index is currently up 0.20%. On Wall Street, the expectation is on the execution of the USD$1.9T stimulus package. Also globally, vaccines are making progress and the number of infections is declining. If the NFP data surprises, we may see the indexes rise to new all-time highs. |
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| Support 1: 3,871.75 Support 2: 3,869.37 Support 3: 3,867.12 Resistance 1: 3,876.38 Resistance 2: 3,878.63 Resistance 3: 3,881.01 Pivot Point: 3,874.00 |
| Expected trading range between 3,867 and 3,881, with pivot point at 3,874. The index is above the ascending channel. Support to watch at 3,804. Resistance to overcome is at 3,893. |
| DAX 30 -0.09% |
| The German index overcame the resistance at 14,000 and is currently trading at 14,038. There is a high correlation between Wall Street indexes and the German index. Therefore, the influence of today’s NFP result is important. If the data surprises, we could see the index rise, even to the all-time high of 14,134. |
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| Support 1: 14,061.6 Support 2: 14,042.3 Support 3: 14,027.6 Resistance 1: 14,095.6 Resistance 2: 14,110.3 Resistance 3: 14,129.6 Pivot Point: 14,076.3 |
| Bulls are now targeting the 14,200 resistance. If market corrections are evident, the support to watch is at 14,076. The index is in the ascending channel. Expected trading range between 14,027 and 14,129. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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