Noor Trends News, Technical Analysis, Educational Tools and Recommendations
For the last three days of trading in the previous week, most trading has been done amid thin market, namely with the number of buyers and sellers at a minimum. This brought about significant volatility and low liquidity.
Volatility was on the rise during the last hour of trading of the year across financial markets.
The Canadian dollar ended Thursday’s trading in the upward direction, benefiting from the US dollar’s decline, which was affected by expectations concerning the pace of the next interest rate hikes in light of the latest employment data that highlighted a decline in the conditions of the US labour market.
The price of gold holds its latest gains above $1,816 amidst thin liquidity conditions. The worse-than-expected Initial Jobless Claims data that failed to support the US dollar on Thursday. The US Department of Labour said that Initial Jobless Claims for the week ended on December 24 jumped to 225K, and 9K above the previous week’s record. Continuing claims rose to 1.7 million in the week that ended on December 17, the highest since early February.
Crude Oil
Crude oil prices are trading sideways in a range between $77 and $79 for the second consecutive day, with investors increasingly wary about the surging COVID-19 infections in China and its consequences for the global economy.
Concerns about the outlook of oil demand are weighing on prices. Investors’ optimism about the decision of the Chinese Authorities to lift the restrictions on inbound travelers faded in the second half of the week as news from China cast a shadow over hopes of a strong economic recovery in the Asian Country.
Gold
In the final week of 2022, gold prices continued their winning streak with gains of 0.75 per cent, ending in positive territory for nine-week in a row. Spot gold price finished the final week of 2022 at $1,822 per ounce levels.
Gold prices are able to print new highs on Friday, but have difficulties holding above the $1,820 level, while silver hits fresh lows. Volatility prevails during the final hours of 2022 across financial markets. Gold prices are hovering around $1,820 about to end 2022 practically flat for an eventful year. On Friday, the Gold Index surged to as high as $1,825 and then pulled back.
The bias point to the upside, but the yellow metal continues to show difficulties in holding above the $1,820 zone. Silver and gold prices showed an unusual divergence. Silver tumbled from fresh highs at $24.15 to 23.66$ while gold remained near the top. XAU/USD is up 0.21% and XAG/USD falls by 0.95%.
The Week Ahead
FOMC minutes will be published on Wednesday, January 4. Typically, the minutes affects trading volume and the volatility of asset prices.
Initial Jobless Claims and the ADP Employment report will be reported on Thursday, January 5, so those won’t affect Wednesday’s FOMC minutes, but the minutes will still reflect the Fed’s assessment of the US economy as the new year begins.
