DBG Markets: Market Report for Oct 11, 2024

Market Overview

A Nuclear Testing In Iran？

A few hours back, there was a tremor in the country of Iran—with the people online suggesting that it was a nuclear testing. While it may be just an earthquake, the timing suggests that this was not to be ruled out. The evidences are not clear but it was enough to stir the narratives.We will see continued growth in GOLD despite the strengthened dollar as tensions in West Asia continues.November And December Rate Cuts By 25 PointsGOLD rises despite better than expected Inflation reports. Federal funds futures prices suggested that investors piled onto bets that the Fed will deliver two additional 25bps rate cuts this year before continuing their rate-cutting cycle throughout next year.Lower rates support gold by reducing the opportunity cost of holding non-interest-bearing bullion assets.

GOLD Our S&D zone supports the bottom structure and finds strength to break into the next S&D zone at 2636.560. We expect further buying to come into the markets as two rate cuts of 25 basis points by the FED in November and December are priced in.Another inflation report is expected later.

SILVER SILVER prices are well supported after a period of trading. Current market movement suggests a rise after a short correction from 31.472, with more buying expected.

DXY The Dollar remains elevated despite the outlook of potential selling due to rate cut expectations. However, war tensions are keeping the price up. We await further trading to determine the markets direction, though if rate cuts proceed, short-term weakness may follow.

GBPUSD The Pound dropped after yesterdays data release. Short-term selling is expected, but if rate cuts occur in the November meetings, a recovery is anticipated.

AUDUSD The Aussie dollar remains flat, consolidated between 0.67531 and 0.67142. Market expectations lean toward continued selling, but further confirmation is awaited.

NZDUSD The Kiwi saw a slight recovery after rate cuts, though the current structure suggests a continuation of selling.

EURUSD The Euro weakened after yesterday's release and is expected to remain bearish as ECB rate cuts are priced in for the coming week.

USDJPY Price failed to break above 0.85541, with markets likely to continue consolidation below this point. However, with the current higher low, bullish momentum may continue.

USDCHF The Yen is making a higher low, indicating another upward move to sustain bullish momentum, revealing continuedYen weakness.

USDCAD The Loonie rises and continues to show weakness as expected. We maintain a bullish outlook for this market in the near term.