Gold, US 100, SPX 500, Bitcoin talking points:
- Gold prices linger around prior resistance, now support around $2,417.
- US 100, SPX 500 pause ahead of Nvidia earnings after reaching fresh highs.
- Bitcoin bulls drive prices back above $71,000.
Commodities slide on renewed USD strength
Gold, silver, copper and oil are all trading lower in the current session, with investors still attempting to weigh the demand outlook with the current geopolitical risks. With gold and copper reaching all-time highs in yesterday’s session, the metals have sacrificed a slight portion of gains as investors and traders closed positions to capitalise on the recent moves.
From a technical perspective, the current 0.30% decline has pulled prices to another important level, forming around $2,147. Throughout last month and last week, this zone formed a firm barrier of resistance which now holds as support.
Gold daily chart (14 Feb - 21 May 2024)
Chart prepared by Tammy Da Costa using TradingView
For oil, despite the developments ensuing from the passing of the Iranian president over the weekend, a diminishing economic growth outlook and stable oil supplies continue to place pressure on both WTI and Brent crude. However, the API report which indicates the weekly change in the oil supply over the last week will be released at 20:30 UTC, shedding some light on the supply situation.
Fed speakers and Canadian inflation in focus
With more speakers of the Federal Reserve expected to provide commentary throughout the day, interest rate expectations and inflation are providing additional catalysts for markets. Any expectations of a delay in Fed rate cuts or higher than expected inflation from Canada, could also assist in driving the pair out of its current range, holding around the level of 1.363.
Source: Skilling Economic Calendar
Bitcoin, US indices enjoy positive gains
Meanwhile, after surging 7.37% in the previous session, Bitcoin prices are currently down a mild 0.28% today, with prices holding above $71,000.
Sticking with risk assets, yesterday saw US indices climb to fresh record highs. US 30 peaked at 40110 , SPX 500 hit 5328.6 and the US 100 surged to a fresh all-time high of 18720.2.
Although these assets have retreated slightly, interest rates and Nvidia earnings are key driving forces for the next move.
Nvidia, the AI and chipmaker giant, currently has a market capitalization of $2.37 Trillion, making it the third largest component in both the SPX 500 and US 100. With the stock climbing 2.49% yesterday, tomorrow’s earnings and growth forecast is critical for the company, indices and industry related stocks.
