Market Sector Scanner: Gold Holds Firm Near $5,000 as Technology Stocks Fall
Gold held firm near $5,000 as technology stocks declined and equities showed mixed performance. With a U.S. holiday to start the week, attention will shift to the Fed meeting minutes, while stocks remain vulnerable to further weakness in the near term.
Last week, U.S. stocks fell, led by technology shares as concerns grew over the impact of AI on existing business models, with weak Retail Sales adding pressure despite softer CPI data. USD/JPY initially rose after Takaichi’s election win but later turned lower, even as stronger U.S. jobs data reduced expectations for a rate cut. Gold continued its steady climb, while Bitcoin remained under pressure as doubts about its longer-term outlook persisted.
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Key Events Calendar for February 16 – February 20
Forex Market
USD/JPY
Last Week Recap
USD/JPY fell toward the bottom of its recent range after confirmation of Sanae Takaichi’s election victory triggered profit-taking. The easing of concerns surrounding Japan’s government finances also reduced speculative pressure on the yen, contributing to the pair’s weakness.
Technical Picture
Despite last week’s decline, the market remains above key support near 152. There is now a noticeable gap between current price levels and the 10-day moving average, suggesting short-term support may hold. Bollinger Bands remain wide following recent volatility, indicating that price swings could continue, but momentum has cooled.
Outlook This Week
A quiet start to the week is likely due to the U.S. holiday on Monday. While a gradual move higher is possible, the short-term trend has turned softer, making large upside gains less likely. Range conditions may continue to dominate unless a fresh catalyst emerges.
GBP/JPY
Last Week Recap
GBP/JPY declined last week as renewed yen strength combined with weaker-than-expected UK GDP data weighed on the pair. Additional political pressure on the UK Prime Minister further dampened sentiment, adding to downside momentum.
Technical Picture
Following the sharp decline, the market briefly touched the lower Bollinger Band, triggering a short-term rebound into Friday’s close. However, the break below the January lows and the downward-sloping 10-day moving average suggest that the recent strong uptrend has likely ended. Momentum has shifted softer in the near term.
Outlook This Week
Short-term buying opportunities may emerge as oversold conditions support corrective rebounds. However, previous January lows near 210 could now act as resistance. For short-term traders, tactical range trades may offer opportunities, but the broader bias has turned more cautious following the recent breakdown.
EUR/USD
Last Week Recap
EUR/USD moved slightly higher last week after recent losses, in what was a quiet trading week. Stronger-than-expected U.S. employment data had little effect, as traders focused on other markets with bigger price moves.
Technical Picture
The 10-day moving average is flat, showing no clear short-term direction. Bollinger Bands are getting narrower as volatility decreases, and the pair is trading within a steady range.
Outlook This Week
With no clear signal from the charts and no strong fundamental driver, range trading conditions are likely to continue this week. Traders may look to buy near support and sell near resistance until a breakout develops.
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Equities
U.S. Stock Market
Last Week Recap
The Nasdaq continued its recent weakness as investors remained cautious. Concerns that AI could disrupt the profitability of many technology companies weighed on sentiment. In addition, stronger-than-expected U.S. employment data reduced expectations for near-term interest rate cuts, adding further pressure.
Technical Picture
The 10-day moving average continues to point lower, showing that short-term momentum remains negative. The lower Bollinger Band is providing temporary support, but overall direction still favors the downside.
Outlook This Week
The short-term downtrend remains in place. Selling near the 10-day moving average appears to be the preferred strategy rather than looking for a strong recovery. Until momentum improves, rallies may continue to attract sellers.
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Commodities
Gold
Last Week Recap
Gold traded around the important $5,000 level last week as the market continued to recover from the recent decline. Demand remains strong, and stronger U.S. economic data did not trigger renewed selling. This shows underlying support is still in place.
Technical Picture
The 10-day moving average is moving sideways, showing a pause in momentum. Bollinger Bands are narrowing around the $5,000 level, reflecting lower volatility and a period of consolidation.
Outlook This Week
Range trading looks most likely in the short term. However, with profit-taking appearing to have eased, the risk now favors a move higher. Buying on dips remains the preferred strategy while support continues to hold.
Stock indices may offer good trading opportunities this week as selling pressure increases. Several economic reports are due, with the Fed minutes likely to be the main focus for traders. Any new policy comments from the Japanese government could also move USD/JPY. With a U.S. holiday on Monday, the week may begin quietly before becoming more active.
