Metals Soar on Global Tensions. Gold (XAUUSD) at Record Highs. Forex Trading Short on AUDNZD

In today’s GCI Market Outlook let’s take a look at Forex Trading on NZDUSD, AUDNZD, Copper, Silver (XAGUSD), and Gold (XAUUSD).

Precious metal bears got caught off guard as everything shot up. Why?

We are always telling Gold traders that they need to watch the fundamentals before technicals as anything can happen.

Today, the price of gold shot up due to several factors:

1. The sudden death of Iran’s president in a helicopter crash is a geopolitical event.
2. Tensions in Gaza continue.
3. Jerome Powell, who has COVID, said last week that there would be no new Interest Rate hikes coming soon.
4. China is desperately trying to stabilise its troubled real estate market sending investors to gold as a safe haven.

This caused silver, platinum and copper to rise as well.

NZD is our strongest currency right now and the only technical opportunity we see is a potential short on AUDNZD.

We see price action reaching the upper trend line in this bearish channel and the stochastic oscillator is in overbought territory.

Also, on Wednesday, the RBNZ will announce its latest Interest Rate and Monetary Policy Statement.

There may be no change but this always causes volatility.

Also, watch out for Wednesday’s UK CPI inflation numbers.

GBP is strong against most other currencies (except AUD and NZD) but if inflation is coming under control, we may see a dip in the pound.