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MTrading Team • 2022-12-30

Gold stays firmer amid mixed feelings as volatile 2022 approaches the end

Gold stays firmer amid mixed feelings as volatile 2022 approaches the end

Global markets remain subdued, mildly positive, expectations of easy rates in 2023 and economic recovery keep traders optimistic even as China Covid conditions weigh on sentiment. That said, the metal’s upside momentum also takes clues from the firmer risk profile in India, also one of the biggest gold consumers other than China.

The cautious mood restricts US Treasury yields and the US Dollar but the USDJPY pair drops further as the Bank of Japan (BOJ) keeps defending the yield curve. Furthermore, Brent oil remains mildly bid but the USDCAD grinds higher amid the US dollar’s hesitance in welcoming bears.

Elsewhere, Wall Street closed positive but the US stock futures print mild losses while the equities in Asia remain firmer. It should be noted that the shares in the UK and Europe begin the day with a minor downside amid the sluggish end of 2022.

Cryptocurrencies remain on the back foot and brace for the downbeat year-end amid fears of more regulations and bankruptcies from the key players.

Following are the latest moves of the key assets:

  • Brent oil eyes firmer 2022 closing despite recent inaction surrounding $80.
  • Gold buyers keep the reins above $1,800 while trying to avoid the yearly loss.
  • USD Index remains mildly bid as greenback buyers take a breather on their way to the biggest yearly jump since 2015.
  • Wall Street closed in the green and helped stocks in the Asia-Pacific region but equities in Europe and the UK decline as we write.
  • BTCUSD and ETHUSD remain pressured as bears lick their wounds near $16,500 and $1,200 in that order.
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Mixed mood troubles traders

Friday feeling joins the year-end holiday mood and a light calendar to offer sluggish markets so far today. However, the gold price remains upbeat and braces for the second consecutive monthly gain despite bracing for a minor yearly loss.

US Dollar remains depressed amid easing fears of the Fed’s higher rates, mainly due to the recently downbeat US data. Even so, the greenback eyes the biggest yearly jump since 2015.

The same joins fears surrounding China’s coronavirus conditions to weigh on the AUDUSD. Though, hopes of economic recovery in 2023 put a floor under the prices. On the contrary, JPY eyes more gains amid hopes of BOJ’s shift in gears after multiple years of ultra-easy monetary policy.

It should be noted that the Russia-linked supply crunch joins the OPEC+ output cut to defend oil buyers but fears of receding demand from the key customer China probe the energy bulls.

BTCUSD and ETHUSD brace for a record yearly fall as crypto traders lost interest in the once-favorite assets after the FTX fiasco triggered multiple bankruptcies in the industry and flagged the need for harsh regulations.

  • Strong buy: GBPUSD
  • Strong sell: ETHUSD, USDJPY
  • Buy: USD Index, USDCAD, Nasdaq, EURUSD
  • Sell: DAX, FTSE 100, gold, BTCUSD, AUDUSD

Optimism for 2023?

While the market sentiment recently turned favorable to the optimists expecting an upbeat 2023, central bankers aren’t all in for the lower rates, especially the BOJ policymakers and those from the Fed. As a result, uncertainty surrounding the next year is likely to join mixed feelings over Covid and geopolitics to trouble the traders in 2023.

May the trading luck be with you!