Noor Capital | Interview with Mohammed Hashad on Dubai TV – January 30, 2023

Interviewed on Dubai TV on Monday, Mohammed Hashad, Head of Research and Development at Noor Capital and a member of the American Association of Technical Analysts, commented on the most important developments in the global financial markets on the first day of trading week, and most notably:

oil

Oil is one of the tools that moved in a different way during the last week’s transactions. There are several factors behind that movement, including the response of the Russian side that Russia may begin to ban the supply of oil and its derivatives to the countries of the European Union or to countries that participate in setting a price ceiling for Russian oil at 100. dollars per barrel.

Oil also benefited from the US GDP data, which showed an expansion of 2.9%, as well as the relative decline of the Coronavirus outbreak, in addition to positive inventories data. Still, there were several factors that prompted oil to give up the gains after it reached the level of 82.40 per barrel, and there was profit-taking. There is another reason, such as the increase in Russian exports despite Western sanctions, with expectations that there will be no change in the production policy of OPEC + at its next meeting.

We can say that oil may reach $100 per barrel, especially after the reopening of the Chinese economy and the recovery of travel. That possibility has become close in light of geopolitical tensions, as well as when central banks return to new interest rate cuts, oil may head for further increases.

Gold

The path is confined between 1920 and 1950, but with an overview of gold’s performance, it is still hovering around its highest level in 9 months, and we saw 5 consecutive weeks of gains for the yellow metal, reaching $ 1950 per ounce. Gold prices are now hoping that the Federal Reserve will start easing monetary policy and abandon the wave of monetary tightening. The focus should be on Jerome Powell’s tone during the press conference and the Fed’s statement.

US debt ceiling

No agreement has been reached yet between the Republican and Democratic parties, and an agreement has been ruled out before June. Still, the worst-case scenario is that if an agreement is reached, we believe that it will have a negative impact on the US economy. We may see a downgrade in the credit rating of the United States, and the markets may collapse in addition to the Americans losing their jobs. The US dollar is also being restricted.