ZuluTrade Blog

Who is right? Gold or Equities?

Market View | Thursday, February 16, 2017 4:46 AM GMT

We all know there is an inverse correlation between gold and the stock market. Nevertheless, this relationship does not seem to be so strong lately. The markets are at their highs while gold has recovered from the lows of 1100 area. The gold traders have anticipated a possible correction on equities and this gave great momentum to gold, but Trump's election didn’t confirm it. Stock traders believe that Trump’s reforms will help to improve US growth; therefore, stock market will benefit once again. 

Overall, this is intriguing, simply because it cannot last for long. So, stocks and bonds will reverse or precious metals will fade soon or later. 

Today we are expecting the Jobless Claims and Housing Permits. We should pay attention on the EU summit early in the evening.

Upcoming News:


 Source: ZuluTrade's Calendar

XAUUSD Technical View 

Reviewing the daily timeframe, Gold seems to be stabilized above 1220 support. Yesterday’s daily candle looks bullish and prices are heading to test recent highs. If price succeeds to break out the 1240 resistance then it may potentially target at 1270. The buyers should be cautious below 1220.

XAUUSD Daily

 


Going to hourly timeframe, there was a break out of the blue channel and a retest of the upper trendline. If this is valid, it gives a potential target at 1245 area. Short-term support is at 1225 area.

XAUUSD Hourly



Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.