It hasn’t been a great start for global equities in this last week of September, with European indices dropping between 1.0 to 1.5 per cent during Monday’s morning session, mirroring a similar performance in Chinese and Japanese markets overnight.
The technical support platform in the $1305 per ounce area came to the rescue of gold once again last week, with five consecutive days of gains, taking the precious metal from the gapped up open of Monday at $1313 per ounce to end the week at $1341.70 on the December contract.
GBPUSD’s downward movement from 1.3445 extended to as low as 1.2914.
EURUSD is forming a sideways consolidation in a range between 1.1123 and 1.1326.
AUDUSD is testing the support of the price channel on 4-hour chart.
The USDJPY pair went back and forth during the course of the session on Friday, ultimately settling on a neutral candle.
The Australian dollar initially rallied during the day on Thursday, but turned around to form a bit of a shooting star.
Ahead of next week’s talks in Algeria, Reuters reported this morning that Saudi Arabia is apparently willing to reduce its oil output for as long as Iran agrees to freeze its production at current levels.
Risk is on the menu at the start of this new week with stocks, crude oil and commodity currencies all climbing higher, while the dollar is easing back slightly after Friday’s rally.
As summer transitions into Autumn, there seems to be little change in the sentiment for gold, which continues to remain rangebound on the daily chart, still transfixed within the Brexit candle of late June.
