Gold price climbs above $1,800 as inflation does not look to be transitory. Facebook, Microsoft investors, prepare for the Q3 2021 earnings.
Gold price is back above $1,800 as inflation fears mount. Twitter’s CEO warned over the weekend that hyperinflation is coming in the United States, a statement that generated much controversy. Nevertheless, the yellow metal is back above its pivotal level and trades with a bid tone.
Last Friday, the Federal Reserve’s Chairman spoke during a live event hosted by the South African central bank and said that it is time to taper its asset purchases. Effectively, it means that the Fed will make the official announcement at its meeting scheduled for next week.
However, the news did not stop the stock market’s bullish run. In fact, the S&P 500 made a new all-time high last Friday, and the rest of the stock market indices traded with a bullish tone too.
In Europe, the new trading week started with the main indices trading slightly in the green. Because the U.S. futures point to a flat opening, the price action is slow so far in the European session.
Oil started the week with a new yearly high. The WTI crude oil price is up close to 1%, trading well above $84.
Economic Events to Consider Today
The trading day is poor in economic events that might influence the price action. The German IFO Business Climate indicator was out earlier in the day, missing expectations by a bit.
Today’s Markets to Watch
Today’s markets to watch are gold, Facebook, and Microsoft.
Gold price is back above $1,800 after it formed an inverse head and shoulders pattern. The price retested the neckline before as it usually does after such a pattern, and then did not look back until it reached $1,800. The level acted as a pivotal one for the yellow metal this year, and so sellers might pile up above. A daily close above would signal more strength ahead.
Facebook reports its Q3 2021 earnings today and the stock price is under pressure recently. It currently sits at dynamic support and a drop below $300 might spell more trouble for the company that considers changing its name, as announced recently.
Microsoft is another company that reports its quarterly earnings this week, and the stock price is at all-time highs ahead of the release. The technical picture looks bullish as the price reacted at the lower edge of a rising channel and now made a new higher high. Therefore, ahead of the conference call, the bias is bullish.
Winners and Losers
Oil started the trading week on a strong note, trading higher by about 1% and sitting comfortably above $84. Euro is seen marginally lower ahead of the European Central Bank decision scheduled next Thursday.
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