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.

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
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • 🇳🇱 Inflation Rate YoY (APR) Actual: 1.9% Expected: 1.7% Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-05-11
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.89%, while traders in Wall Street are at opposite extremes with 77.13%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/sV6ncqn10p
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/xkNb1VIrEN
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.10% 🇨🇦CAD: 0.08% 🇨🇭CHF: 0.06% 🇦🇺AUD: 0.03% 🇳🇿NZD: -0.03% 🇯🇵JPY: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/hxMR9a5jxI
  • Heads Up:🇳🇱 Inflation Rate YoY (APR) due at 04:30 GMT (15min) Expected: 1.7% Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-05-11
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.25% US 500: -0.52% France 40: -1.12% Germany 30: -1.24% FTSE 100: -1.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/sAj0aetO3t
  • Retail FX traders (at IG) have pushed up their long $USDCAD position to levels not seen in years which has nudged the net long to approximately 85% of open interest. They are fighting that trend https://t.co/eIOcdLiPik
  • Risk trends is the focus to start this week with the Nasdaq 100 dragging sentiment down through the close of the NY session. My attention is on the Dollar as pairs like $GBPUSD stare down major resistance or reversal: https://www.dailyfx.com/forex/video/daily_news_report/2021/05/11/EURUSD-GBPUSD-and-Nasdaq-Outlook-Key-Levels-and-Events-Ahead.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/72GGBPMNcw
  • White House monitoring supply shortages in parts of the southeast -BBG
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/RAtsYwpmXl
Gold Price Outlook: Gold Clings to Support Ahead of the Fed

Gold Price Outlook: Gold Clings to Support Ahead of the Fed

James Stanley, Senior Strategist

Gold Price Outlook Talking Points:

Gold Prices Grasp to 1500 Ahead of the FOMC

Gold prices had a strong showing this summer, continuing a bullish trend that started to build about a year ago when Gold was trading below the 1,200 marker. The fourth quarter of last year brought a noticeable ramp that lasted into mid-February and after a three-month-pullback in which a falling wedge formation had formed, buyers returned in late-May and continued to drive for the next three months. That theme of strength even lasted through the Labor Day holiday, with Gold prices setting a fresh six-year-high two weeks ago but, again, failing to hold above the 1550 level.

After a quick return back below the 1500 psychological level, Gold prices have spent the past week grasping to hold support. A quick flicker of strength developed around last week’s ECB meeting but Gold price action soon returned to support and has hung there ever since.

Gold Price Four-Hour Chart

gold price four hour chart

Chart prepared by James Stanley; Gold on Tradingview

Gold Prices: Is a Deeper Pullback Around-the-Corner?

Given the extended bullish trend in Gold prices, the RSI indicator has reached its most overbought since 2011, right around the time that Gold prices topped-out and began to tumble-lower from the post-GFC bullish run. And initially, throughout the month of August, those deeper overbought conditions didn’t look to impede buyers too greatly. But more recently, as expectations for the Fed making a dovish shift have diminished, Gold bulls have softened the approach and a deeper pullback may show should the Fed frame this week’s rate cut as another ‘mid cycle adjustment,’ or fails to highlight additional future cuts via the Summary of Economic Projections.

Gold Weekly Price Chart

gold weekly price chart

Chart prepared by James Stanley; Gold on Tradingview

Given the longer-term bullish trend, traders may want to use any near-term weakness to look for a revisit to longer-term support. The prospect of the Fed hiking rates anytime soon is a distant one and the potential for even softer policy appears to be hinged on a number of factors, such as trade wars or pressures in equity markets. But, at this point, it looks like markets might need to wait for at least a little while before the Fed broadcasts a grander dovish flip.

The support levels looked at in our last article remain workable, although given the traffic already seen around the 1493 level, traders would likely want to shy away from hitting that too aggressively. Below that is a zone of potential that runs from around 1475-1480 and, below that, a group of potential support points around the 1450 level. A revisit to with a hold of support at either of these zones re-opens the door for bullish strategies in Gold.

Gold Price Four-Hour Chart

gold four hour price chart

Chart prepared by James Stanley; Gold on Tradingview

To read more:

Are you looking for longer-term analysis on the U.S. Dollar? Our DailyFX Forecasts have a section for each major currency, and we also offer a plethora of resources on Gold or USD-pairs such as EUR/USD, GBP/USD, USD/JPY, AUD/USD. Traders can also stay up with near-term positioning via our IG Client Sentiment Indicator.

Forex Trading Resources

DailyFX offers an abundance of tools, indicators and resources to help traders. For those looking for trading ideas, our IG Client Sentiment shows the positioning of retail traders with actual live trades and positions. Our trading guides bring our DailyFX Quarterly Forecasts and our Top Trading Opportunities; and our real-time news feed has intra-day interactions from the DailyFX team. And if you’re looking for real-time analysis, our DailyFX Webinars offer numerous sessions each week in which you can see how and why we’re looking at what we’re looking at.

If you’re looking for educational information, our New to FX guide is there to help new(er) traders while our Traits of Successful Traders research is built to help sharpen the skill set by focusing on risk and trade management.

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES