Forex News

News source: FXStreet
Apr 24, 16:58 HKT
Silver price today: Silver falls, according to FXStreet data

Silver prices (XAG/USD) fell on Wednesday, according to FXStreet data. Silver trades at $27.23 per troy ounce, down 0.29% from the $27.31 it cost on Tuesday.

Silver prices have increased by 6.91% since the beginning of the year.

Unit measure Today Price
Silver price per troy ounce $27.23
Silver price per gram $0.88

 

The Gold/Silver ratio, which shows the number of troy ounces of Silver needed to equal the value of one troy ounce of Gold, stood at 85.16 on Wednesday, up from 85.02 on Tuesday.

Investors might use this ratio to determine the relative valuation of Gold and Silver. Some may consider a high ratio as an indicator that Silver is undervalued – or Gold is overvalued – and might buy Silver or sell Gold accordingly. Conversely, a low ratio might suggest that Gold is undervalued relative to Silver.

 

Global Market Movers: Comex Silver price stays defensive on ebbing geopolitical fears

  • Comex Silver price turns red around $27.30 on Wednesday, despite the weaker US Dollar. 
  • A relaxation in Middle East geopolitical tensions drags Silver price to a two-week low. 
  • The rising demand for white metal in industrial uses supports the XAG/USD. 
  • Investors will take more cues about the US inflation trajectory and interest rate outlook from the US Q1 Gross Domestic Product (GDP) number on Thursday and the Core Personal-Consumption Expenditures (PCE) Price Index due on Friday.

(An automation tool was used in creating this post.)

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

 

Apr 24, 16:42 HKT
EUR/JPY sets to capture 166.00 on Japanese Yen’s persistent underperformance
  • EUR/JPY eyes more upside amid uncertainty over BoJ’s neat rate hike.
  • Japan Ochi expects that an intervention is possible if the Yen slides further to 160 or 170 vs. the US Dollar.
  • The speculation for ECB pivoting to interest rate cuts in June remains firm.

The EUR/JPY pair aims to extend its upside to 166.00 due to persistent weakness in the Japanese Yen. The cross consolidates near multi-year highs but is expected to rise further as investors expect that the Bank of Japan (BoJ) will struggle to tighten its monetary policy further due to absence of significant wage growth spiral.

Apart from that, Japan has raised bar for USD/JPY where the administration could do a stealth intervention has also weighed on the Japanese Yen. In Wednesday’s early European session, Senior Japan Ruling Party Executive Ochi said, "There is no broad consensus right now, but if the yen slides further toward 160 or 170 to the dollar, that may be deemed excessive and could prompt policymakers to consider some action" Reuters reported.

Earlier, investors were speculating that Japan will intervene in the FX domain when the Japanese Yen will drop to 155.00 against the US Dollar. But now higher targets for the major have exposed the Japanese Yen to more downside.

Going forward, investors will focus on the BoJ’s interest rate decision, which will be announced on Friday. A Reuters poll in the April 11-17 period showed that none of the economists have predicted a rate hike move before June. The survey also showed that economists are anticipating that the BoJ will raise interest rates one more time. The survey lacks clear consensus on when exactly the move would come.

Meanwhile, the Euro performs relatively weaker against other currencies as the European Central Bank (ECB) is widely anticipated to cut interest rates in the June meeting. ECB policymaker Villeroy de Galhau said last week that they could cut rates in the next meeting, barring a major surprise. Villeroy emphasized on returning to structural transformation as inflation is receding.

Also, ECB Joachim Nagel said in Wednesday’s European session that a June interest rate cut may not be necessarily followed up by a series of rate cuts. The statement clearly indicates that he is comfortable with a rate cut move in June.

EUR/JPY

Overview
Today last price 165.51
Today Daily Change -0.18
Today Daily Change % -0.11
Today daily open 165.69
 
Trends
Daily SMA20 164.19
Daily SMA50 163.26
Daily SMA100 160.88
Daily SMA200 159.79
 
Levels
Previous Daily High 165.74
Previous Daily Low 164.63
Previous Weekly High 165.03
Previous Weekly Low 162.67
Previous Monthly High 165.36
Previous Monthly Low 160.22
Daily Fibonacci 38.2% 165.32
Daily Fibonacci 61.8% 165.05
Daily Pivot Point S1 164.97
Daily Pivot Point S2 164.24
Daily Pivot Point S3 163.85
Daily Pivot Point R1 166.08
Daily Pivot Point R2 166.47
Daily Pivot Point R3 167.2

 

 

Apr 24, 12:18 HKT
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
  • Gold price lacks follow-through buying and is undermined by a combination of negative factors. 
  • Easing geopolitical tensions, along with renewed USD buying, act as a headwind for the commodity.
  • Traders now look to important US macro data for Fed rate cut cues and fresh directional impetus.

Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day. Easing concerns about a further escalation of geopolitical tensions in the Middle East remain supportive of a generally positive tone around the equity markets. This, along with the emergence of some US Dollar (USD) dip-buying, bolstered by hawkish Federal Reserve (Fed) expectations, is seen undermining the non-yielding yellow metal. 

The downside, however, seems limited as traders might refrain from placing aggressive directional bets ahead of important US macro releases, starting with Durable Goods Orders later this Wednesday. The focus, however, will remain glued to the Advance US Q1 GDP report and the Personal Consumption Expenditures (PCE) Price Index. The data will be looked upon for cues about the Fed's rate-cut path, which will drive the USD demand and help in determining the near-term trajectory for the Gold price. 

Daily Digest Market Movers: Gold price remains on the back foot amid positive risk tone, renewed USD buying

  • Easing concerns over geopolitical tensions in the Middle East remain supportive of a generally positive risk tone and continue to act as a headwind for the safe-haven Gold price. 
  • Hawkish comments from Federal Reserve officials lifted bets that the US central bank will keep rates higher for longer and further undermined the non-yielding yellow metal. 
  • The weaker US PMI prints released on Tuesday keep the US Dollar bulls on the defensive near a one-and-half-week low, which is seen lending some support to the commodity.
  • The S&P Global Composite Purchasing Managers Index (PMI) fell to 50.9 in April's flash estimate, suggesting that the business activity in the US private sector expanded at a slower pace. 
  • Meanwhile, the S&P Global Manufacturing PMI unexpectedly dropped into the contraction territory in April, while the gauge for the services sector declined to 50.9 from 51.7 in March.
  • Traders also prefer to wait on the sidelines ahead of this week's key US macro data, which might influence the Fed's future policy decision and provide a fresh impetus to the XAU/USD. 
  • Wednesday's US economic docket features Durable Goods Orders, though the focus remains on the Advance Q1 GDP report and the Personal Consumption Expenditures (PCE) Price Index.

Technical Analysis: Gold price bears might wait for sustained break below $2,300  mark before positioning for deeper losses

From a technical perspective, the XAU/USD showed some resilience below the 23.6% Fibonacci retracement level of the February-April rally. The subsequent bounce, along with the fact that oscillators on the daily chart are still holding in the positive territory, warrants some caution for bearish traders. Hence, it will be prudent to wait for acceptance below the $2,300 mark before positioning for deeper losses. The Gold price might then slide to the $2,260-2,255 area, or the 38.2% Fibo. level, en route to the $2,225 intermediate support and the $2,200-2,190 confluence, comprising the 50% Fibo. level and the 50-day Simple Moving Average (SMA). 

On the flip side, any further move up is more likely to confront stiff resistance and remain capped near the $2,350-2,355 region. The next relevant hurdle is pegged near the $2,380 supply zone, which is followed by the $2,400 mark and the all-time peak, near the $2,431-2,432 area. A sustained strength beyond the latter will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent blowout rally witnessed over the past two months or so.

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

 

Apr 24, 16:20 HKT
NZD/USD Price Analysis: Could break into the symmetrical triangle, rises to near 0.5950
  • NZD/USD extends gains despite the prevailing bearish sentiment for the pair.
  • A break below 0.5900 could lead the pair to test the rebound support level of 0.5863.
  • A break into the triangle around the level of 0.5963 has the potential to weaken the bearish sentiment.

NZD/USD advances for the third consecutive session on Wednesday, trading around 0.5940 during the European session. The pair is testing the lower boundary of the daily symmetrical triangle around the level of 0.5963. A breach into the triangle could potentially weaken the bearish sentiment.

However, analysis of the lagging indicator Moving Average Convergence Divergence (MACD) suggests a downward trend for the NZD/USD pair. This is indicated by the placement of the MACD line below the centerline and the signal line.

Additionally, the 14-day Relative Strength Index (RSI) remains below the 50 level, further confirming the bearish sentiment. This could prompt NZD/USD to approach the psychological level of 0.5900. A break below this level may lead the pair to test the rebound support region around the levels of 0.5863 and 0.5850.

Alternatively, If the NZD/USD pair breaks into the symmetrical triangle, it might target the psychological barrier of 0.6000. A breakthrough above this level could support the pair's momentum to test the 50-day Exponential Moving Average (EMA) at 0.6023, which aligns with the upper boundary of the triangle around 0.6030.

NZD/USD: Daily Chart

NZD/USD

Overview
Today last price 0.5937
Today Daily Change 0.0004
Today Daily Change % 0.07
Today daily open 0.5933
 
Trends
Daily SMA20 0.5965
Daily SMA50 0.6055
Daily SMA100 0.6119
Daily SMA200 0.6051
 
Levels
Previous Daily High 0.5949
Previous Daily Low 0.5902
Previous Weekly High 0.5954
Previous Weekly Low 0.5851
Previous Monthly High 0.6218
Previous Monthly Low 0.5956
Daily Fibonacci 38.2% 0.5931
Daily Fibonacci 61.8% 0.592
Daily Pivot Point S1 0.5907
Daily Pivot Point S2 0.5881
Daily Pivot Point S3 0.586
Daily Pivot Point R1 0.5954
Daily Pivot Point R2 0.5975
Daily Pivot Point R3 0.6001

 

 

Apr 24, 16:07 HKT
India Gold price today: Gold recovers, according to MCX data

Gold prices rose in India on Wednesday, according to data from India's Multi Commodity Exchange (MCX).

Gold price stood at 71,911 Indian Rupees (INR) per 10 grams, up INR 554 compared with the INR 71,357 it cost on Tuesday.

As for futures contracts, Gold prices decreased to INR 70,972 per 10 gms from INR 71,029 per 10 gms.

Prices for Silver futures contracts increased to INR 80,690 per kg from INR 80,678 per kg.

Major Indian city Gold Price
Ahmedabad 74,430
Mumbai 74,235
New Delhi 74,230
Chennai 74,380
Kolkata 74,475

 

Global Market Movers: Comex Gold price struggles amid positive risk tone, modest USD strength

  • Easing concerns over geopolitical tensions in the Middle East remain supportive of a generally positive risk tone and continue to act as a headwind for the safe-haven Gold price on Comex. 
  • Hawkish comments from Federal Reserve officials lifted bets that the US central bank will keep rates higher for longer and further undermined the non-yielding yellow metal. 
  • The weaker US PMI prints released on Tuesday keep the US Dollar bulls on the defensive near a one-and-half-week low, which is seen lending some support to the commodity.
  • The S&P Global Composite Purchasing Managers Index (PMI) fell to 50.9 in April's flash estimate, suggesting that the business activity in the US private sector expanded at a slower pace. 
  • Meanwhile, the S&P Global Manufacturing PMI unexpectedly dropped into the contraction territory in April, while the gauge for the services sector declined to 50.9 from 51.7 in March.
  • Traders also prefer to wait on the sidelines ahead of this week's key US macro data, which might influence the Fed's future policy decision and provide a fresh impetus to the XAU/USD. 
  • Wednesday's US economic docket features Durable Goods Orders, though the focus remains on the Advance Q1 GDP report and the Personal Consumption Expenditures (PCE) Price Index.

(An automation tool was used in creating this post.)

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

 

Apr 24, 16:02 HKT
German IFO Business Climate Index improves further to 89.4 in April vs. 88.9 expected
  • German IFO Business Climate Index surpasses estimates with 89.4 in April.
  • IFO Current Economic Assessment improved to 88.9 in the reported month.

The headline German IFO Business Climate Index came in at 89.4 in April, way higher than the March reading of 87.9. The market forecast was for an 88.9 print.

Meanwhile, the Current Economic Assessment Index rose from 88.1 in March to 88.9 in the same period, beating estimates of 88.7.

The IFO Expectations Index – indicating firms’ projections for the next six months, improved to 89.9 in April vs. 87.7 seen in March while surpassing the expected 88.9 figure.

Market reaction to the German IFO Survey

EUR/USD fails to find inspiration from the upbeat German IFO survey. At the time of writing, the pair is trading 0.09% lower at 1.0688 amid resurgent US Dollar demand.

About German IFO

The headline IFO business climate index was rebased and recalibrated in April after the IFO Research Institute changed the series from the base year of 2000 to the base year of 2005 as of May 2011 and then changed series to include services as of April 2018. The survey now includes 9,000 monthly survey responses from firms in the manufacturing, service sector, trade and construction.