Gold and Reddit Market news 10 May 2024

USA

Wall Street left scepticism in the dust today, as jobless claims raised chances of an interest rate cut before the end of the year. Elsewhere, high demand at a bond auction pushed Treasury rates lower, with the 10-year note falling more than two basis points to 4.5%.

US stocks rose after an increase in initial jobless claims to the highest level since August 2023 triggered a dovish reaction across assets, while the focus was also on the BoE meeting, where a couple of dovish dissenters appeared, and Governor Bailey hinted at future cuts. US market futures plateaued overnight after surging as unemployment claims data fuelled rate-cutting optimism.

Commodities

Crude futures rose slightly as the currency weakened and geopolitical uncertainties increased.

Spot gold resumed its recent data-driven gains, rising above USD 2370/oz.

After further tensions increasing and a potential of rate cuts this year gold has risen 1.65% yesterday and is currently up 1.20% for the day with 2 big green candles after bouncing off a double bottom just 1 week ago. Currently the price is within previous support and at the psychologically important level of 2,375 after breaking through the 20EMA. Technically, gold is over the 20EMA,50EMA and 100EMA. The RSI is around the 60 level and Stoch RSI has crossed and is sloping upwards with the lines not having indicated a decrease in momentum. If momentum remains then the next target is indicated by the 1 fib line around the $2425 line. On the other hand a breakdown could result in a retreat towards the 0.786 fib line around $2,925.

Corporate news

Reddit – the social media platform that had its IPO in March, has posted its first earnings report!

During its first earnings call as a publicly traded company, Reddit reported yesterday that its advertising unit took in $222.7 million in revenue last quarter, up 39% year over year. The quarter's total revenue was $243 million, up 48% year over year. The US accounts for more than four-fifths of Reddit's revenue with a reported 82.7 million daily active unique users, up 37% year over year. However, the platform is still not profitable as it reported a $575 million loss,  of which most was as a result of IPO-related costs. It could look better next quarter.

Headlines

As mentioned yesterday, US is set to impose tariffs on China EVs and key sectors after its Section 301 review as early as next week, according to Bloomberg. This could have dire results for Chinese EV makers. As they had begun pushing into the US market. But possibly aiding US EV manufacturers such as Tesla.

Warner Bros. announced the release of a new Lord of the Rings movie in 2026, produced by Peter Jackson and directed by Andy Serkis, who played Gollum in the original trilogy. With Lord of the rings having had immense success, this might come as a beneficial catalyst for Warner Bros.

Boeing…again. First a door blowout, then a loose turbine cover. Yesterday a malfunctioned landing gear. Now, a Boeing 737 skidded off the runway in Senegal, injuring 11 in the process. Increased scrutiny of Boeing through whistle-blowers and continuous safety concerns are currently plaguing Boeing, and I wonder when this will end.

Commercials are driving a huge increase in Amazon's ad revenue. Because it now includes streaming advertisements in Prime Video subscriptions by default, the e-commerce behemoth blew away analysts' forecasts in Q1 by generating $11.8 billion in advertising income. Compared to the same time last year, when the company hadn't yet added advertisements to its streaming platform, ad sales had increased by 24%. With $143 billion in total revenue for the quarter, Amazon posted significant earnings beat thanks to the ad boom.

Enjoy your weekend traders,

Follow me on Twitter: www.twitter.com/PhilipForexCom