Gold is Facing Selling Pressure While the Dollar is Stabilizing

market news summary

On Sunday, April 23rd, US-based home appliances company Bed Bath & Beyond filed for bankruptcy protection after a series of recent attempts to raise enough financing to keep the company afloat failed.

In Europe, indices fluctuated between losses and gains throughout the trading session on Friday, April 21st, before ending the session on a positive note due to the follow-up of the company’s business results.

At the end of the session, the STOXX600 index rose by 0.34% to 469 points, with a weekly gain of 0.4%, marking its fifth consecutive weekly gain. The German DAX rose by 0.54%, reaching 15881 points, while the British FTSE increased by 0.15%, reaching 7914 points. The French CAC also closed up by 0.51%, at 7,577 points.

Dollar index (USDX)

The US dollar saw a sharp uptick at the start of the European trading session on Friday, signaling its first weekly gain in over a month. This comes as market speculation mounts that the Fed will tighten monetary policy at its upcoming meeting in May.

The dollar index traded 0.1% higher at 101.720, on course for a weekly gain of around 0.3% after a five-week losing streak.

This week, comments from a number of Fed policymakers have indicated the Fed will raise interest rates by 25 basis points next month. They argue that inflation remains at concerning levels and that monetary policy should remain tight, with interest rates kept high.

However, this could be the last rise as economic data suggests that the US economy is beginning to slow down. Financial markets are therefore pricing in the possibility of interest rate cuts as early as July and continuing through the rest of the year.

Pivot Point: 101.55

Resistance level	Support level
101.75	101.25
102.05	101.05
102.50	100.55

Spot Gold (XAUUSD)

On Friday, April 21st, gold prices recorded their second consecutive week of losses.

Upon settlement, gold futures fell by 1.4%, or $28.6 an ounce, to $1990.5 an ounce, to reach the lowest level in 3 weeks.

The decline in gold prices coincided with expectations that the Fed would raise interest rates by approximately 25 basis points, rising to 80%.

Pivot Point: 1986

Resistance level	Support level
2001	1967
2020	1952
2035	1936

Dow Jones Index (DJ30ft – US30)

On Friday, April 21st, US indices closed with slight gains but recorded weekly losses, with investors following corporate business results and statements by Fed officials.

The Dow Jones index rose less than 0.1% at 33,808 points but recorded weekly losses of about 0.23%.

The S&P500 rose less than 0.1%, recording 4,133 points, while the Nasdaq closed up 0.1%, at 12,072 points.

On Friday, American companies continued to disclose their quarterly results, with Procter & Gamble Co exceeding expectations and the stock rising by 3.46% at the end of the session.