Please find below the Market Report from David Evans, BetOnMarkets Market Analyst. Will gold hit $1,100 today? Market report 07.00 AM GMT In the last few days, the price of gold has shot up and yesterday came within just $2.50 of hitting the $1,100 level. Gold tends to rally best when it's out of the headlines and the recent move has been no exception. After busting through $1050, gold went through a quiet patch and it appears the Central Bank of India used this opportunity to buy 200 tons of the precious metal. Will gold hit $1,100 today? You can bet on this happening here. Stock markets performed a classic 'buy the rumour/ sell the news' action yesterday with a promising pre Federal Reserve announcement rally wiped out in 30 minutes. US markets such as the Dow Jones (Wall Street) still managed to close in positive territory but not by much. Overnight, the situation has worsened with big falls in Asian markets. Traders are fearful after the Bank Of Japan confirmed that it will be ending its program to buy corporate debt. New Zealand also added to the dour mood with unemployment rates hitting a 5 year high. The FTSE 100 is expected to open around 0.8% lower. On Forex markets, the 'safe' currencies of the dollar and yen are in demand with risk taking firmly on the back foot. The yen is the strongest asset with big gains against the euro (EUR/JPY), pound (GBP/JPY) and Aussie dollar (AUD/JPY). The New Zealand dollar (NZD/USD) is the biggest faller after the poor unemployment figures. What's hot? The yen: EUR/ JPY, GBP/ JPY, USD/ JPY & AUD/ JPY. The US dollar: GBP/ USD, EUR/ USD & AUD/ USD. The New Zealand dollar (If betting against): NZD/ USD Bet idea: Today's central bank announcement from the ECB and MPC are likely to 'no change' verdicts , but there's an outside chance that the Bank Of England my not be halting its asset purchase plan as quickly as many are expecting. It's a long shot, but taking a punt on the pound (GBP/ USD) to sink after the announcement could pay dividends, especially if you use a one touch trade with the level set far way. Today's market movers: Today's big market movers are the two central bank announcements. At 12.00 we have the latest rate statement from the Bank of England's Monetary Policy committee. Rates are almost certain to remain at 0.5%, but the main interest is to do with the asset purchase facility and whether it will be continued or stopped like the Bank of Japan. At 13.30 we have a similar announcement from the European Central Bank. Again rates are likely to be left on hold at 1%, but traders will be looking for signs of confidence from Trichet and his team. Other top announcements today include Australian central bank governor Stevens speaking at 08.55, UK manufacturing at 09.30 and US unemployment claims at 13.30. In short, another busy day. Currency guide: USD: US dollar GBP: Great Britain Pound JPY: Japanese Yen EUR: Euro CHF: Swiss Franc AUD: Australian Dollar CAD: Canadian Dollar NZD: New Zealand Dollar Currencies trade in pairs so you might see USD/JPY which means the US dollar/Japanese Yen exchange rate. |