Daily Markets

• Gold prices hit a record high in Asian trade on Monday amid growing bets that the Federal Reserve will cut interest rates by a bigger margin later this week. Reports of a second assassination attempt on Republican presidential nominee Donald Trump also spurred some demand for safe havens, although Trump appeared to be unharmed, and the assailant apprehended. Asian trading volumes were somewhat limited by market holidays in Japan, China, and South Korea. A softer dollar allowed for more strength in gold prices, as markets awaited a Fed meeting. The central bank is widely expected to cut interest rates on Wednesday, although markets are split between a 25 or 50 basis point cut. CME Fedwatch showed markets split exactly 50% over the two options, with bets on a bigger cut coming back into play on concerns over weakness in the labor market. The central bank is also expected to kick off an easing cycle from this week, with analysts expecting at least 100 bps of rate cuts by the end of the year. Lower rates bode well for precious metals, given that they reduce the opportunity cost of investing in non-yielding assets. Trump assassination attempt spurs some safe haven demand. Gold saw some safe haven demand after reports of a second assassination attempt on Trump, this time at his golf course in Florida. But secret service agents foiled the attempt in a reported shootout with the assailant, who was later apprehended by authorities. Trump was unharmed during the event, stating as much in a message on his fundraising website. A string of data released from China over the weekend showed industrial production and retail sales grew less than expected in August, while unemployment rose and house prices fell. The readings ramped up concerns over an economic slowdown in the country, which could bode poorly for its appetite for copper. But ANZ analysts said that the government could now have more impetus to release stimulus measures.

Gold – XAU

Gold on Friday made its intraday high of US$2585.92/oz and low of $2556.61/oz. Gold is up by 0.8811% at S$2579.04/oz.

Technicals in Focus:

On the daily charts, gold trades higher than 20DMA (2197). If it drops below this level, it could lead to 2,100. The MACD is currently above the zero line and the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 83.04, which is in the overbought region, suggesting there may be selling pressure in the next 2 to 3 sessions. The Stochastic Oscillator is also in the overbought territory but has given a positive crossover, indicating a bullish stance for intraday trades, but rebound in expected in all the overbought indicators.

Trading Strategy: Sell on Strength

Sell below 2594-26 keeping stop loss closing above 2600, targeting 2545-2531-2520-2505 and 2,490-2,484-2,470 Buy in between 2580-2490 with risk below 2490 targeting 2594-2600-2610 and 2620-2634 .

Silver - XAG

Silver on Friday made its intraday high of US$30.92/oz and low of US$29.83/oz settle up by 2.90% at US$30.71/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 20MA (25.05), breakage above will lead to 23.73. MACD is below the zero line and histograms are increasing trend, bringing a bullish stance in the upcoming sessions. RSI is in the oversold region, indicating a sell signal for now. The Stochastic Oscillator is in the overbought region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 30.50-25.90, targeting 30.10-30.50-31.10 and 31.90-32.50 with stop loss should be placed on the breakage below 26.00. Sell in between 31.00-33.00 with a stop loss above 33.50 targeting 30.50-29.80-29.50 and 28.90-28.00-27.60-27.10.

Oil - WTI

Crude Oil on Friday made an intra‐day high of US$69.41/bbl, an intraday low of US$67.64/bbl, and settled down by 0.415% to close at US$68.37/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 100DMA i.e. 75.37, a support level, and breakage above will call for 77.48. MACD is above the zero line and histograms are in increasing mode will bring a bullish stance in the upcoming sessions. The Stochastic Oscillator is in the overbought region, giving a negative crossover to confirm a bearish stance; while the RSI is in the neutral region, more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 69.00-73.90 with stop loss at 74.00; targeting 68.00-67.30-66.00 and 65.00-64.20-63.50 Buy above 68.00-62.00 with risk daily closing below 62.00, targeting 68.90-69.60-69.40 and 70.00-71.35.

EUR/USD

EUR/USD of Friday made an intraday low of US$1.1067/EUR, a high of US$1.1101/EUR, and settled the day down by 0.135% to close at US$1.1075/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.0800), which becomes immediate support, a break below will target 1.0717. MACD is above the zero line and histograms are increasing mode, bringing a bullish view. Stochastic is in oversold territory, giving negative crossovers to the bullish outlook for intraday. 14D RSI is currently in a neutral region and giving no directions to consider right now.

Trading Strategy: Neutral to Sell

Sell below 1.1150-1.1400, targeting 1.1060-1.1020-1.0960 and 1.0850- 1.0785 with stop-loss at daily closing above 1.1100. Buy above 1.11000-1.0785 with risk below 1.0700 targeting 1.1150-1.1190-1.1250 and 1.1290-1.1340-1.1400.

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.3114/GBP, a high of US$1.3157/GBP, and settled the day up by 0.003% to close at US$1.3123/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.2674) is becoming a support level. 14-D RSI is currently in a neutral region and direction is difficult to predict on an RSI basis. The Stochastic Oscillator is in oversold territory and gives a positive crossover to confirm a bullish stance. MACD is above the zero line, but histograms are increasing leading to movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy in between 1.3140-1.2600 with a target of 1.3200-1.3310 and 1.3390-1.3450 with a stop loss closing below 1.2600. Sell in between 1.3200-1.3410 with targets at 1.3150-1.3100-1.3040 and 1.2950-1.2890-1.2790 with a stop loss of 1.3100.

USD/JPY

USD/JPY on Friday made an intra‐day low of JPY140.27/USD an intraday high of 141.86/USD, and settled the day down by 0.618% at JPY140.83/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (155.35), major support on the daily chart. 14-D RSI is currently in the overbought region and chances of downward are expected based on RSI. MACD is above the zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is in overbought territory and signaling to sell as it has given a negative crossover to confirm a bearish stance.

Trading Strategy: Neutral to Sell

Sell below 140.0-144.00 with risk above 144.00 targeting 139.60-139.00-138.40-137.90 and 137.20-136,00. Long positions above 139.60-136.00 with targets of 140.00-140.90-141.70 and 142.50-143.60-144.20 with sto42ps below 136.00.