Gold Loses its Luster and the Dollar Dominates
MARKET NEWS SUMMARY
US indices closed with limited gains in Wednesday’s session after stronger-than-expected retail sales data showed evidence of resilience in the US economy, but gains were capped as investors are worried about further interest rate hikes by the Fed in the coming months.
On Wednesday, a report released by the US Commerce Department showed that Retail Sales m/m rose 3% in January, which is higher than analysts’ expectations of 1.8%.
US oil inventories rose sharply, exceeding analysts’ expectations last week amid rising gasoline inventories.
Dollar index (USDX)
Yesterday, US economic data revealed that retail sales rose by 3%, exceeding expectations of 1.9%.
The US dollar index rose to its highest level in a month on Wednesday, to settle near its pivot point at 103.60. Markets are awaiting today’s PPI data.
Pivot Point: 103.60
| Resistance Level | Support level |
| 104.15 | 103.20 |
| 104.55 | 102.65 |
| 105.00 | 102.00 |
British Pound (GBPUSD)
The pound fell after the release of the consumer price index data in Britain, which was expected to drop from 10.5% to 10.3%, but the actual data came at 10.1%.
Getting support from the US dollar’s strength, the pound is trying to stabilize near its important levels at 1.2065, with bearish momentum.
Pivot Point: 1.2065
| Resistance level | Support level |
| 1.2085 | 1.2030 |
| 1.2115 | 1.2000 |
| 1.2160 | 1.1970 |
Spot Gold (XAUUSD)
Gold prices recorded the lowest settlement price in 5 weeks at the end of the trading session on Wednesday, February 15th, with the US dollar gaining more strength and the release of economic data.
Upon settlement, gold futures fell by 1.1%, or $20.10, to $1,845.30 an ounce, the lowest settlement price since January 5.
Pivot Point: 1,840
| Resistance level | Support level |
| 1,845 | 1,824 |
| 1,853 | 1,812 |
| 1,871 | 1,800 |
US Crude OIL (USOUSD)
US oil inventories rose sharply exceeding analysts’ expectations last week amid rising gasoline inventories.
According to the data issued yesterday, Wednesday, February 15th, by the US Energy Information Administration, crude inventories increased by 16.28 million barrels last week, though expectations were an increase of about two million barrels, and 2.4 million barrels in the previous week. Moreover, gasoline stocks increased by about 2.31 million, though it was expected to increase by about 1.5 million.
US crude fell below $78 levels after the data was released, but it was soon back to try to stabilize around 79.35 levels.
Pivot Point: 78.30
| Resistance level | Support level |
| 79.35 | 78.00 |
| 80.15 | 77.40 |
| 81.50 | 76.60 |
