Back
Details Cookies
United Kingdom
Important margin product information

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

Cookie policy

This website uses cookies to offer you a better browsing experience by enabling, optimising and analysing site operations, as well as to provide personalised ad content and allow you to connect to social media. By choosing “Accept all” you consent to the use of cookies and the related processing of personal data. Select “Manage consent” to manage your consent preferences. You can change your preferences or retract your consent at any time via the cookie policy page. Please view our cookie policy here and our privacy policy here

Spanish storm may make gold sparkle Spanish storm may make gold sparkle Spanish storm may make gold sparkle

Spanish storm may make gold sparkle

Trade View
Short Term / Buy
Steen Jakobsen

Chief Investment Officer

Instrument: XAUUSD
Price Target: 1365 (1400)
Market Price: 1305

Background:

Gold: We are entering a long XAUUSD here with a stop loss below 1280.

An alternative strategy could be to wait for break of 1308.00 – the 200-day simple moving average – where we suspect renewed hedge fund interest will emerge considering that positioning is at ten month low at present.

Parameters:

Entry: 1305
Stop: 1280
Target: 1365, then 1400
Time Horizon: Short to Medium Term

 
Source: Saxo Bank
Spanish bonds
Source: Saxo Bank
Management And Risk Description:

1. If Spain also becomes an issue we will see contagion which should leave gold the only real safe haven at a time when a flood of data is providing more and more confirmation of  an economic slowdown (China RRR cut, Credit Impulse, Monetary Aggregates, central bank balances).

2. Italy is a slow burning fuse which will continue to play a role with Iran and Turkey joining the cocktail of uncertainty.

3. US data has been very poor of late (plus our expected incoming slowdown).

4. We think cycle top is in for US Treasury yields.  Fed Bullard’s 1st sign and how the position shift hurt old timers like Bill Grossindicates that more pain is coming

Focus this afternoon will move to Spain and the debate prior to Friday's no-confidence vote in Prime Minister Mariano Rajoy.  The market will also be looking ahead to the US non-farm payrolls tomorrow.

The vote will again depend on the Basque Nationalist's five votes, and after the “surprising support” for the budget last week (which was given after getting concessions on pensions) it’s very much up in the air.

The FT says there is political agreement to oust Rajoy, but little consensus as to how.

A compiled overview of Trade Views provided on Home.saxo can be found here (https://www.home.saxo/en-gb/insights/news-and-research/trade-views/report).

Disclaimer

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice or a personal recommendation and does not take into consideration your objectives, financial situation and needs. Saxo Capital Markets UK Limited will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information. We assume no liability for errors, inaccuracies or omissions contained within these materials.

It is important that you understand that with investments, your capital is at risk. We offer leveraged products which carry risk and can result in losses that exceed deposits. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more here.

Additional Key Information Documents are available in our trading platform.

Saxo Capital Markets UK is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871

Please read our full disclaimer - https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Support Centre
For existing clients, please click here to request support via the Support Centre.

Have a question about our products, platforms or services? Visit the Support Centre to find answers for our most frequently asked questions. If you are still unable to locate an answer to your question, you will also find contact details for your local Saxo office to speak with a representative.

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.