Gold: Embracing The Red Monkey

What to expect in the next few weeks and month ahead as the global market embrace the year of the Red Monkey:

  • The true risk lies in Chinese global economic outlook and question remain if China is facing a soft or hard landing?
  • Yuan devaluation may be the only policy to maintain growth – however, we cannot rule out a global currency war
  • Money outflow suggest concerns about domestic growth in China is growing
  • There is also a potential of delayed purchase among producers as market sentiment has grown from cautious to over-cautious – curtailing spending
  • 2016 kicks off with increase market volatility but the more important question is when will the market head into a stable environment?
  • Central banks around the world will need to adjust their tone and policies to suit market expectations
  • BOJ has initiated negative interest rate, will the ECB and the FED follow suit in 2016?
  • Traders big worry is for a severe market correction – central banks may not have the necessary tools to avert it
  • Panic mode continue to hover in the market place – Safe Haven demand remain elevated

Currencies 

Dollar Index

Daily – Potential sign of reversal as Dollar index may have found support with RSI building a steady divergence

USD/JPY

Weekly

EUR/USD

Weekly

GBP/USD

Weekly

NZD/USD

Weekly

Indices

FTSE

Weekly

CAC

Monthly

STOXX

Weekly

SPX

Monthly

Commodities

Oil

Monthly

Copper

Weekly

Platinum

Weekly

 

 

 

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