The Big Picture: Global Economic Signals

Market Analysis

GOLD

GOLD prices are currently finding increased buying momentum and volume, albeit with a slow progression upward. We expect further buying to continue in the coming days as prices have respected the underlying bullish structure. This expectation is also supported by the current geopolitical landscape; analysts note that escalating tensions in both West Asia (Middle East) and the ongoing, high-intensity conflict in Ukraine are providing a supportive floor for Gold and capping any significant sell-offs. On the technical front, the MACD is showing a steady increase, alongside the RSI which indicates a rise in momentum.

SILVER

The SILVER slowdown has occurred as we expected after prices reached the resistance ceiling at 36.7308. We anticipate a potential continuation of this short-term selling, as shown by the RSI and MACD which are indicating increased bearish momentum and volume. However, as long as the overall price action remains structurally bullish, the longer-term expectation is for prices to eventually resume their upward trend.

DXY

The Dollar still consolidates. Most market participants are in a “wait-and-see” mode ahead of the high-impact Consumer Price Index (CPI) report for May, which is scheduled for release later today. The market's direction for the rest of the week will likely be influenced by this report and subsequent inflation data, including Thursday's Producer Price Index (PPI) and Friday's preliminary University of Michigan (UoM) Consumer Sentiment figures. We will not call a change in this market until after these key data points provide a clearer picture.

GBPUSD

The Pound falls under the EMA200 and might test the broader bullish structure. While this move does not yet shift our overall momentum expectations, it does confirm that the consolidation is extending. Although the MACD reflects selling volume alongside the RSIs bearish momentum, we will hold off on making any definitive calls until we see a decisive break from the current range.

AUDUSD

The Australian Dollar is extending its consolidation. We will hold off on our calls for this pair.

NZDUSD

The Kiwi is also consolidated. We will hold off on our calls for this market.

EURUSD

There was little movement with the Euro. We will hold off on our calls until a catalyst emerges.

USDJPY

The Yen is currently consolidated as well. We will hold off on our calls for this pair.

USDCHF

There was little change in the Franc as well. We will hold off on our calls for this market.

USDCAD

The CAD has retracted after its test on the EMA200. While the mid-term movement of the pair is still consolidated, we do expect to see a rise in selling momentum and volume according to the MACD and the RSI. We anticipate further selling [of USD/CAD] to continue.