We still await the SEC lawsuit decision before we see real traction.

Ripple tried to rally again on Monday but simply cannot get off of its back. This is not a huge surprise, because most of crypto looks rather anemic. Add to the fact that Ripple is dealing with an SEC lawsuit that seems like it’s never going to end, there’s no real reason to think that Ripple was suddenly going to rip to the upside. Quite frankly, it’s probably more likely that it does the exact opposite.

At this point, the $0.40 level looks to be a bit of a magnet for the price, but I believe that we are about to break down again, based on the technical pattern on the chart. The descending triangle measures for a move to $0.30, and I think that move could be rather quick. If we get some type of negative momentum in the crypto markets overall, that will be reason enough for Ripple to fall. While once thought of as a potentially strong project, Stellar Lumens can do the same thing without the SEC causing headaches.

That being said, it’s worth noting that the market is going to be highly sensitive to the rest of crypto, so if we do get some type of bullish run in other markets, that could translate into a short-term balance for Ripple. However, I would not get overly excited about any rally and would look at it with suspicion. In fact, I will probably find an offshore exchange to start shorting this market again, especially near the 50-day EMA.

Longer term, I think Ripple could be interesting. However, I believe you are probably going to get an opportunity to buy it at much lower levels, perhaps as low as $0.20 if you are patient enough. At that point, I might buy some and stick it in a wallet somewhere to simply forget about it. If it works out, great. If it does not, that’s okay as well, as it won’t be a major loss in the big scheme of things.

While Ripple does have a lot of traction in some parts of the world, not being able to use the US banking system is going to be a major weight around its neck, so we still await the SEC lawsuit decision before we see real traction.

Gold futures are struggling to hold on to weekly gains after a strong US jobs report for May raised the likelihood of maintaining the Federal Reserve’s approach to fighting inflation. Although the yellow metal is still high this year, it has been on a steady decline since March. After the US data was announced, the price of gold fell to the support level of $1840 an ounce at the beginning of this week’s trading, before settling around the $1856 level at the time of writing the analysis. Before the US jobs data, the price of gold maintained gains that reached the resistance level of 1875 dollars for an ounce. The gold price left its gains since the start of the year 2022 to date at 1.11%.

In the same way, the price of silver, the sister commodity to gold, fell below $ 22 again. Accordingly, the price of the white metal erased about 1.2% of the week’s gains, adding to its decline since the start of the year 2022 to date by more than 6.3%.

On the economic side, in May, the US economy added a total of 390,000 jobs, beating market estimates of 325,000. This was the lowest employment gain in 13 months. The country’s unemployment rate stabilized at 3.6%, while the labor force participation rate rose to 62.3%. Average hourly wages rose 0.3%, average weekly hours were unchanged at 34.6, and the national employment rate is still 0.5% lower than the pre-pandemic level.

Overall, the strong US jobs report prompted investors to acknowledge that the Fed is likely to continue tightening by raising US interest rates by 50 basis points and cutting its $9 trillion balance sheet.

The gold market in general is sensitive to a high interest rate environment as it increases the opportunity cost of holding non-return bullion. Moreover, the US Treasury market was up across the board, with the benchmark 10-year bond yield rising 4.6 basis points to 2.961%. Yields on one-year notes rose 3.6 basis points, while yields on 30-year notes jumped 4.6 basis points. The US Dollar Index (DXY) rose to 102.18, from the opening at 101.82. The index measures the performance of the US currency against a basket of major currencies, and it achieved a weekly gain of 0.5%, which raises its rise since the start of the year 2022 to date to 6.5%.

In general, a stronger profit is bad for dollar-priced commodities because it makes them more expensive to buy for foreign investors.

Among other economic data, the US Institute of Supply Management’s (ISM) non-manufacturing purchasing managers’ index fell to 55.9 in May, below market expectations of 56.4. Business activity fell, employment rose, new orders rose, and prices fell.

In other metals markets, copper futures fell to $4.464 a pound. Platinum futures fell to $1013.20 an ounce. And futures contracts for palladium fell to 1975 dollars an ounce.

According to the technical analysis of gold: Despite the recent performance, the price of gold has the opportunity to rebound higher as long as it is stable around and above the resistance 1850 dollars an ounce on the daily chart below. The bulls will need to move towards the resistance levels 1877, 1885 and 1900 dollars, respectively, to confirm the control in gold trend. I still prefer buying gold from every bearish level and the closest and most appropriate buying levels are 1838 and 1820 dollars an ounce respectively. I expect a quiet trading session today.

Gold futures contracts are on track to achieve the worst performance for one session in two months, as they fall below $1900 with the start of this important week’s trading. The price of gold fell to the $1855 support level, its lowest in two and a half months. Gold prices have come under heavy pressure from rising Treasury yields and a stronger US dollar. According to the latest performance, gold is retreating from a weekly loss of more than 1%, trimming its annual gain to less than 2%.

All in all, the precious metal is on track for its biggest daily drop since March 9.

As for the price of silver, the sister commodity to gold, it is also declining with the beginning of this week’s trading. Silver futures fell to $22.64 an ounce. The price of the white metal fell more than 4% last week, increasing its loss in 2022 by 3%. Commenting on the performance, Jim Wyckoff, Senior Analyst at Kitco.com wrote: “Precious metals are being affected earlier this week by bearish external market forces, the strong US dollar index approaching a 20-year high, the strong decline in US crude oil prices and bond yields.”

US Treasury yields were higher across the board, with the 10-year bond yield rising to 2.979%. One-year bond yields rose to 2.066%, while 30-year bond yields increased 0.102% to 3.048%.

Gold is generally sensitive to a higher interest rate environment because it raises the opportunity cost of holding non-yielding bullion.

The US Dollar Index (DXY), which measures the performance of the US currency against a basket of other major currencies, rose to 103.71, from an opening at 103.18. Overall, the index had a brutal start to 2022, rising more than 8%. Over the past 12 months, the DYX US Dollar Index is up 14%.

In general, a stronger US dollar profit is bad for dollar-priced commodities because it makes them more expensive to buy for foreign investors.

Meanwhile, the Federal Reserve will conclude its two-day Federal Open Market Committee (FOMC) meeting on Wednesday. The Eccles Building is expected to raise the benchmark federal funds rate by 50 basis points in the market. Investors are also widely expected that the central bank will pull the trigger on another 50 basis point rise in June. Despite high inflation and a negative headline GDP reading in the first quarter, gold is weakening due to a tightening economy.

In other metals markets, copper futures fell to $4.2605 a pound. Platinum futures fell to $931.30 an ounce. Palladium futures fell to $2,203.00 an ounce.

According to gold technical analysis: On the daily chart, the price of gold is moving within a bearish channel that was formed recently and its momentum increased with breaking the level of $1900 for an ounce. Technical indicators moved towards a bearish direction as soon as the price moved towards the support level of 1855 dollars. Currently, the price of gold is heading towards new buying levels, the most prominent of which are currently 1848 and 1830 dollars, respectively. I still prefer buying gold from every bearish level, as global geopolitical tensions, and the return of anxiety over the outbreak of the epidemic led by China will support the purchase of gold as a safe haven in the end.

On the other hand, in order for the bulls to regain control, the resistance of 1900 dollars per ounce must be breached. The gold market will be affected today by the level of the US dollar and the extent to which investors take risks or not.

Sterling remained weak against the euro, dollar, and other currencies early this week after Bank of England Governor Andrew Bailey reminded financial markets of what is increasingly an uncertain bank rate outlook. Sterling was healing wounds after coming under pressure following earlier comments from Bank of England Governor Andrew Bailey in a discussion on macroeconomics and financial stability at Bruegel, an economic policy think tank. In the case of the GBP/USD currency pair, it retreated to the support level of 1.3051 before settling around the 1.3100 level at the time of writing the analysis.

Bank of England Governor Bailey said the significant pressure on income from recent increases in the prices of commodities and other commodities is on par with what we have seen in any one year from the 1970s and stated that this could reduce the extent to which interest rate hikes are needed further. “We are facing a very big shock by all historical standards,” he said. We’ve got a pretty big trade-off between inflation, production and activity, with the two moving in opposite directions. And “there is a very high level of uncertainty.”

He added, “The point I want to make here is that in these circumstances, forward-looking policy guidance should be aware of the uncertainty we face and the risks we face, and with that really in mind, we changed our language in our last meeting to state that more Of modest emphasis it may be appropriate ‘instead of’ is likely to be fitting ‘as we have used before’.

While expectations for the bank rate were later dampened following the Bank of England’s March policy statement, pricing in the swap market (OIS) still implied on Monday that another increase in the bank rate from 0.75% to 1% is uncertain. “There is only one expectation that I can safely make and that is that there will be a meeting in May,” the governor added.

Financial market prices also envisage a bank rate hike to 2 per cent or more before the end of the year, an assumption that will likely be pressure tested in the near future if the BoE’s latest language and the governor’s comments on Monday are anything to follow. The Bank of England said on March 17 that inflation was likely to reach 8% by April and warned that this could dampen demand from some parts of the economy, while Governor Bailey said on Monday that this dynamic could eventually reduce domestically produced inflation.

Governor Bailey’s recent comments and BoE language mean that the next round of economic forecasts will be doubly important, especially whether or not inflation drops further below the 2% target at the end of the forecast horizon. The latter could lead to commodity pressure on income being seen as a proxy for some of the interest rate hikes that have all been transferred to the bank by the markets recently, and that will be why each of the BoE’s upcoming policy decisions poses two-sided risks to the pound.

According to the technical analysis of the pair: On the daily chart, the price of the GBPUSD currency pair has turned bearish. The opposite bearish channel may appear clearly with the breach of the 1.3000 psychological support, which may bring the bears more movement to the bottom. Therefore, the next most important support levels may be 1.2920 and 1.2800 on the straight. On the other hand, there will not be a strong and continuous bullish momentum without the bulls moving towards the 1.3335 resistance. Today, the currency pair will be affected by the announcement of the growth rate of the US economy and the number of US non-farm payrolls from ADP.