News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • 🇿🇦 ABSA Manufacturing PMI (JUL) Actual: 43.5 Previous: 57.4 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 🇬🇧 Markit/CIPS Manufacturing PMI Final (JUL) Actual: 60.4 Expected: 60.4 Previous: 63.9 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/iKSgaB6JUP
  • Heads Up:🇬🇧 Markit/CIPS Manufacturing PMI Final (JUL) due at 08:30 GMT (15min) Expected: 60.4 Previous: 63.9 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 💶 Markit Manufacturing PMI Final (JUL) Actual: 62.8 Expected: 62.6 Previous: 63.4 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 🇩🇪 Markit Manufacturing PMI Final (JUL) Actual: 65.9 Expected: 65.6 Previous: 65.1 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 🇮🇹 IHS Markit Manufacturing PMI (JUL) Actual: 60.3 Expected: 61.5 Previous: 62.2 https://www.dailyfx.com/economic-calendar#2021-08-02
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.02%, while traders in Wall Street are at opposite extremes with 75.65%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/izlA7uadGr
  • Heads Up:💶 Markit Manufacturing PMI Final (JUL) due at 08:00 GMT (15min) Expected: 62.6 Previous: 63.4 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Heads Up:🇩🇪 Markit Manufacturing PMI Final (JUL) due at 07:55 GMT (15min) Expected: 65.6 Previous: 65.1 https://www.dailyfx.com/economic-calendar#2021-08-02
Gold Triangle Presents Breakout Opportunity

Gold Triangle Presents Breakout Opportunity

James Stanley, Senior Strategist

Gold Triangle Presents Breakout Opportunity

By James Stanley

As traders wait on the sidelines for the next round of news, and rumors from Europe, the Daily Chart on Gold has settled in to a Triangle that presents a compelling breakout opportunity for traders.

Gold_Triangle_Presents_Breakout_Op_body_Picture_1.png, Gold Triangle Presents Breakout Opportunity

Created with Trading Station 2/Marketscope

After displaying one of the more pervasive trending moves since 2001, the ‘Yellow Metal,’ has faced some difficult times since peaking at 1920 in September of 2011.

One of the primary winds in the sail of Gold for 2010, leading into 2011 was the process of Quantitative Easing brought on by the US FOMC. Quantitative Easing, or ‘QE,’ as it has been dubbed, is the process by which a Central Bank will buy assets from smaller banks, or other financial institutions – with newly created money.

Think about the relationship with the quote in the chart above; XAU/USD.

The US Dollar – as the denominator, will generally weaken if all factors are equal and new US Dollars are being created. In the equation of XAU/USD – the denominator of USD essentially gets smaller as these new dollars are created. So the rise in Gold accompanying QE comes as no surprise.

What may be surprising is the brutal response in September that took the price of Gold below 1550. Since that point, Gold has maintained a relatively smooth trend line leading directly into the triangle with which we are now faced.

Breakouts can generally take place in any direction, and this opportunity on Gold is no different. The future move that trader’s may be looking to capitalize on here could very well be brought on by a yet unknown news announcement, or surprise event.

Next week can be a fun time in financial markets; but it may also be painful if we’re caught on the wrong side of a move.

Remember – trading opportunities are infinite, trading capital is not.

--- Written by James B. Stanley

To contact James Stanley, please email Instructor@DailyFX.Com. You can follow James on Twitter @JStanleyFX.

To join James Stanley’s distribution list, please click here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES