support@enclavefx.com | +447451200066
Blogs & News

Blogs view



To Keep An Eye on FTSE and Gold

To Keep An Eye on FTSE and Gold

Retail sales decline less than expected, yet the FTSE rises. After losing for five weeks, gold is likely to post its first weekly gain.


Retail sales decline less than expected, yet the FTSE rises.


The FTSE is beating its European counterparts and replicating advances made in the US overnight, indicating a higher opening.


Due partly to strong spending over the Queen's Jubilee weekend, UK retail sales declined less than anticipated in June. Sales decreased by -0.1% MoM, up from a -0.5% decline in May. A loss of -0.3 percent was expected.


Food sales increased, offsetting a drop in petrol sales as drivers couldn't bear the high pump prices. Sales are anticipated to remain poor for the foreseeable future as inflation continues to squeeze household finances.


Future UK PMI data should reveal a slowdown in the service and industrial sectors. The manufacturing PMI is predicted to be 52, down from 52.8, and the services PMI is expected to be 53, down from 54.3. Between expansion and contraction is level 50.


What will the FTSE do next?


The June 28 high of 7350 served as a barrier once more for the FTSE before it started to decline and found support from the 20 sma yesterday at 7210. These two levels are where the price is now stuck. Although buyers will need to break through strong resistance at 7350 to make a higher, recapture the 200 sma at 7380, and put 7500 into focus, the RSI keeps buyers optimistic about more gains.


Following five weeks of falls, gold is expected to post its first weekly gain.


After making significant gains yesterday, gold is taking a breather after climbing back from a 16-month low of $1681.


Oversold RSI circumstances fueled yesterday's rebound, a resurgence of growth concerns following the ECB's rate hike by more than 50 basis points, and worse than anticipated US jobless claims. Unemployment assistance applications from Americans reached an 8-month high.


The rising USD is currently restraining gold prices. Now, the focus is on PMI data, which is anticipated to reveal that business activity in the US expanded more slowly in July. 


Where will gold prices go from here?


When gold prices dropped to $1681, they entered oversold territory, which aided in the price recovery. There wasn't much acceptance at this lower level, as indicated by the candle's long lower wick.


To continue the recovery toward the 20 sma at 1752 and the high of July 7, buyers must surpass resistance at 1724, the October low.


Sellers may emphasize that the RSI is still in the negative territory and that the price is still trading below the 20 and 200 sma. For the negative trend to continue, sellers must break below 1680. Where will gold prices go from here?


When gold prices dropped to $1681, they entered oversold territory, which aided in the price recovery. There wasn't much acceptance at this lower level, as indicated by the candle's long lower wick.


To continue the recovery toward the 20 sma at 1752 and the high of July 7, buyers must surpass resistance at 1724, the October low.


Sellers may emphasize that the RSI is still in the negative territory and that the price is still trading below the 20 and 200 sma. For the negative trend to continue, sellers must break below 1680.


All Blogs
Find Us

Address Info

Company Address

2nd Floor, College House, 17 King Edwards Road, RUISLIP, London, HA4 7AE, UNITED KINGDOM

Call Us

+44 7451200066