Gold renews multiday top despite sluggish markets

Global markets sneak early into the pre-inflation inaction on Wednesday amid a light economic calendar. Adding strength to the lack of momentum could be the mixed clues from the US and China that confused traders.

Even so, the downbeat prints of the US Treasury bond yields weighed on the US Dollar and allowed Antipodeans, as well as the commodities, to remain firmer despite no major positives.

That said, Gold rises to the highest levels since May 2022 while Brent oil prints mild gains after a disturbing two-day uptrend on Tuesday.

AUDUSD and USDCHF are the biggest gainers from the USD weakness, mainly due to their risk-barometer status, whereas USDCAD and NZDUSD stood on the other hand.

Talking about cryptos, BTCUSD grinds near a three-week high while ETHUSD fails to keep the bulls in the driver’s seat and snaps a three-day uptrend.

Following are the latest moves of the key assets:

• Brent oil prints mild gains around $79.50 to reverse the previous day’s losses.
• Gold rises for the fourth consecutive day to refresh eight-month high around $1,885.
• USD Index fades the previous day’s corrective bounce, down 0.10% intraday near 103.20 by the press time.
• Wall Street closed in the green but stocks in the Asia-Pacific region traded mixed, which in turn challenges equities in Europe and the UK.
• BTCUSD and ETHUSD struggle for clear directions around $17,500 and $1,340 in that order.

Nothing major except for Gold

Although the rest of the markets remain calm, Gold traders welcome buyers and refresh multi-day highs as traders rush to traditional haven amid indecision. Adding strength to the precious metal’s upside could be the hope of more efforts from China to revive the world’s second-largest economy. 

Fed Chairman Jerome Powell’s hesitance in conveying monetary policy outlook and the mixed US data also strengthened the XAUUSD prices.

Elsewhere, upbeat economics from Australia and New Zealand allowed the key antipodeans to remain firmer but sluggish oil prices stopped USDCAD from cheering the US dollar’s weakness.

Asian equities traded mixed despite the firmer closing of the Wall Street benchmarks, which in turn probes share prices in the West as of late.

Cryptocurrency traders are in a dilemma about the latest run-up in BTCUSD and ETHUSD even as regulatory fears join easing market participation after the FTX fiasco.

• Strong buy: GBPUSD
• Strong sell: ETHUSD, USDJPY
• Buy: USD Index, USDCAD, Nasdaq, EURUSD
• Sell: DAX, FTSE 100, gold, BTCUSD, AUDUSD

Risk catalysts are the key

An absence of major data/events could restrict the market moves to look forward, even as earnings may entertain traders on Wall Street. That said, risk catalysts like central bankers’ comments and updates from China may act as additional catalysts to watch for clear directions. Furthermore, updates on economic slowdown concerns, like we heard from World Bank the previous day, shouldn’t be missed as well.

May the trading luck be with you!