We are expecting a bullish rally to develop in the new five-day period. Energy companies began evacuating offshore oil platforms as the 25th named storm of the year formed in the Caribbean and was forecast to move into the Gulf of Mexico and threaten the Gulf Coast this week. Tropical Storm Delta was expected to strengthen as it crosses the warm waters of the Gulf of Mexico midweek and to approach the northern Gulf Coast as a category 1 hurricane with up to 105 mile per hour winds, the National Hurricane Center said. This is a positive signal for oil prices!
Trading recommendation: Buy 39.01 and take profit 40.50.
Positive macroeconomic statistics on the labor market signal the continuation of the upward trend in the US stock market. The unemployment rate fell more than expected to 7.9% of the workforce, from 8.4% in August. The broader 'U6' measure of underemployment also fell, but stayed at the historically high level of 12.8% of the labor force. Participation in the workforce fell again, to 61.4% from 61.7% in August. The Federal Reserve will buy $ 29.45 billion in Treasury bonds this week, up from $ 9.52 billion a week earlier. The volume of purchases will triple, which will provide good support to the US stock market.
Trading recommendation: Buy 3380 and take profit 3420.
According to the Federal Reserve, the M2 money supply in the United States has renewed its all-time high and reached $ 18.72 trillion. The indicator increased by $ 20 billion, against $ 123.9 billion a week earlier. The growth rate of the money supply has been accelerating for the third week in a row. The growth rate has renewed its historical maximum and is 23% y/y. This is a negative signal for the US currency and a positive signal for the precious metal. The US Treasury will redeem $ 10 billion in Treasury bonds, and the Federal Reserve will buy $ 29 billion in Treasury bonds on this week. Thus, the financial system will receive just over $ 39 billion, which will support the precious metal market.
Trading recommendation: Buy 1904 and take profit 1927.