DBG Markets: Market Report for Oct 3, 2024

Market Overview

GOLD - GOLD is currently finding support but not enough strength compared to the recent escalations happening in West Asia. The price is just about to make another low. This may be in response to the markets waiting for the data to come out tomorrow during the NFP release. This will further bolster market movement. One way or another, this will allow the markets to measure how significant the movement will be ahead of the upcoming November rate cuts.

In other words, GOLD has one direction to go: upward.

SILVER - This commodity is finding strength in the markets and will soon see further buying. As an additional secondary asset to GOLD, it will provide enough security to traders and investors. Currently, we are above 31.472 and expect to find support here to continue trading upward.

DXY - After FED Chair Powell made his statement that another 50-point cut is unlikely, the USD rallied. A slower cut indicates that the U.S. is in a better situation. Another big cut would cause worries and possibly push prices lower than previously seen. We will wait to see how the NFP release tomorrow comes out. Depending on the release, this may push the USD down further.

GBPUSD - The Pound has consolidated and is expected to gain strength soon. However, current weakness is expected to last until a clearer market direction is established tomorrow. Thus, today, there may be little movement or a steady sideways trend.

AUDUSD - The Aussie dollar is currently consolidated. We are waiting for further trading but expect possible buying to come into the market after a deeper correction.

NZDUSD - The Kiwi is undergoing a deeper correction earlier than the Aussie dollar as market expectations for next weeks rate cuts further the drop. We are waiting to see how markets will react to 0.62086.

EURUSD - The Euro weakness has been emphasized further as markets expect more rate cuts in two weeks. We anticipate more selling depending on Friday's data.

USDPY - The Japanese PM announced that they are not ready to announce more rate hikes. Currently, we see the Yen slide massively. We expect further buying to continue in light of the reduced rate hike expectations.

USDCHF - The Franc lost strength, rising above the S&D zone. However, the CHF remains in a range. We expect it to stay in this range longer.

USDCAD - The CAD failed to break below 1.34803. Currently, we see a possible buy with CAD weakness. However, we also expect further selling to continue fundamentally as issues arise in West Asia. We are waiting for further market activity to guide our approach.