The market continues to observe an intense bull run, with the XAUUSD gold contract soaring and speculation around Artificial Intelligence boosting the Tokyo stock exchange, which surpassed the unprecedented 40 thousand points mark. Along with the American and European stock markets, they are renewing historic highs.
The bull run continues in full swing, and it’s Asia’s turn to get in on the action.
Last week, the market started cautiously. On the one hand, the bull run is already underway, targeting future interest rate cuts in the US and Europe. On the other hand, the fear that these cuts could be postponed due to the bad inflation data released by the American CPI and PPI.
The hot topic was the PCE, a personal consumption price index, highlighted by FED members as the main inflation data used to determine changes in monetary policy. The PCE came in as expected, signaling that a month outside the curve would not change plans, which boosted the bull run and resulted in the XAUUSD gold contract soaring.
The euphoria did not change the bets, mostly in favor of the first US interest rate cut at the June meeting. It was a huge confirmation that the bull run is valid, attracting many investors who were still in doubt.
The highlights of the week’s rise were gold, as already mentioned, and Dell, with a 31% increase in a single trading session after the release of better-than-expected results and expectations of new positive results, driven by AI speculation.
Speaking of AI, it also boosted the Tokyo stock exchange, surpassing the unprecedented 40,000 points mark, along with the American and European stock exchanges, renewing historic highs. There is also a speculative movement that Japan tends to relax its rigid interest rate policy, which has not been revised since 1998.
Since we mentioned historic highs, we can’t help but mention Bitcoin, which reached the $67,400 mark this week, very close to the top of $69,000 reached in November 2021.
The market’s euphoria is very evident, we haven’t seen such a significant movement in years (discounting the economic recovery from the pandemic). The Brazilian stock market has not yet caught on to the scenario, which is why it is very important to macroscopically diversify your investments.
Gold Analysis
The XAUUSD Gold contract confirmed the breakout of the symmetrical triangle on Thursday and has risen more than 4% since then. It was a very significant increase, and we are close to the historic high. In this scenario, the ideal would be to wait for the high to break or enter on the selling side, believing in a pullback, even if it is short-term. The Fibonacci retracement points will be highlighted in the figure below. If you enter on the selling side, don’t forget to place your stop at the maximum of the movement, after all, we still don’t have clear signs of a correction.
XAUUSD Chart — Gold Spot US Dollar Price — TradingView
Euro/Dollar Analysis
The EURUSD pair remains within the consolidation rectangle drawn in the previous panorama. The rectangle is small and reinforces the consolidation scenario, with the moving averages also within it. After a breakout, I recommend waiting for confirmation with the next candle, since we have already had some false breakouts in the graphic figure.
EUR USD Chart — Euro to Dollar Rate — TradingView
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