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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
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
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • A recession is typically accompanied by falling stock prices, but equities are not the be-all and end-all for recession investment strategies. Get your market update from @PeterHanksFX here: https://t.co/H0Rf3AkECs https://t.co/5Il5ptMnMu
  • The $USD may rise versus the Singapore Dollar, Indonesian Rupiah and Malaysian Ringgit if capital flows out of #ASEAN countries as key U.S. data risks a selloff in equities. Get your market update from @ddubrovskyFX here: https://t.co/JWIRn6MLrK https://t.co/y2tXiYs9aV
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/H6I3MXjW06
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/ZsHdd9NFcO
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/TisnGYxllM
  • Here my weekend trading video 'Dow, VIX, Dollar and Gold: Levels and Volatility to Gauge the Markets' https://www.dailyfx.com/forex/video/daily_news_report/2020/03/28/Dow-VIX-Dollar-and-Gold-Levels-and-Volatility-to-Gauge-the-Markets-.html?ref-author=Kicklighter&QPID=917719&CHID=9
  • #Silver and #gold prices have had a fascinating 2020, counterintuitively falling as the #coronavirus’ economic hit has become horribly apparent. A rebound is now afoot. Get your market update from @DavidCottleFX here: https://t.co/nng7lwQ22E https://t.co/JwehIVbBA2
  • Foreign exchange – or “#forex” – markets often pay close attention to politics and central bank policy. We offer a model for traders to gauge their impact on exchange rates. Get your market insight from @ZabelinDimitri and @CVecchioFX here: https://t.co/FbXc1Awu6a https://t.co/mcq5Bq2Jui
  • The $USD soared against the Indonesian Rupiah, with USD/IDR eyeing its best month since the 1997-98 Asia financial crisis amid the #coronavirus outbreak. Can this trend continue? Find out from @ddubrovskyFX here:https://t.co/M3sDZOftrE https://t.co/sbIbp68UOh
  • The $USD may be at risk as technical signals show USD/SGD, USD/MYR and USD/IDR may turn lower. Ahead, the markets will likely weigh US fiscal stimulus bets against dismal data risk. Get your market update from @ddubrovskyFX here:https://t.co/iGqBrY6qyO https://t.co/kJ89YgK3Mm
Guest Commentary: Gold Market Keeps Heating Up – What's Next For Gold?

Guest Commentary: Gold Market Keeps Heating Up – What's Next For Gold?

2011-07-13 17:00:00
Lior Cohen, Energy Analyst for Trading NRG,
Share:

Gold Market Keeps Heating Up – What's Next For Gold? July 13

Gold continues its rally as it rose for six consecutive days; gold and silver are currently traded up on the weak US dollar. Today, the Chairman of the Fed will testify, the Eurostat will publish the Euro Area industrial production report and China will present its GDP for second quarter.

Let's examine the news of the day related to the precious metals market for today July 13th:

Gold and Silver–July

Gold inclined on Tuesday, July 12th by 0.85% to $1,562 – its highest price level in 2011. Gold rose for six consecutive days.

Silver on the other hand declined again by 0.18% to $35.63.

During July, gold increased by 4%, and silver inclined by 2.3%.

The chart below shows the normalized gold and silver (June 30th 2011=100). It shows that gold and silver started July with falls, then they have inclined, and currently they are both above their initial price level from the beginning of the month.

Guest_Commentary_Gold_Market_Keeps_Heating_Up_Whats_Next_For_Gold_body_Gold_prices_forecast__silver_price_outlook_2011_JULY_13.png, Guest Commentary: Gold Market Keeps Heating Up – What's Next For Gold?

As of Tuesday, July 12th the ratio between gold and silver remains around the 43 mark as it rose to 43.84; during July this ratio inclined by only 1.6%, which means that during July (up to now) gold moderately outperformed silver.

Guest_Commentary_Gold_Market_Keeps_Heating_Up_Whats_Next_For_Gold_body_Gold_prices_forecast__silver_price_outlook_ratio_2011_JULY_13.png, Guest Commentary: Gold Market Keeps Heating Up – What's Next For Gold?

China, Euro Zone and US Economy

Today, China will publish its quarterly report 2011; due to the recent raises in the interest rate and loans restrictions by the People Bank of China, this might have also slowed down in the economic growth rate of China during the second quarter. This report could affect the changes in the commodities markets.

The Euro Stat will publish its monthly report on the industrial production progress in the Euro Area during May; in the April 2011, the IP grew by 0.2% in the Euro Area and 0.1% in the EU27 compared with March's; in annual terms, during April the industrial production inclined by 5.2% in (Y-2-Y) in the Euro Area and 4.7% in the EU27.

Ben Bernanke will testify before the US senate today. Following Bernanke's recent press conference in which he said there won't be a new QE3 (for now), it will be interesting to see if he might hint of a new stimulus plan considering the recent dissipating US labor report.

Euro, USD/ Gold & Silver– July Update

The EURO/USD exchange rate fell during July by 3.6%; During June, the EURO to US dollar exchange rate was highly positively correlated with the daily percent changes of gold and silver . But this isn't the case as the EURO/USD and gold (daily percent changes) are currently negatively correlated. The last time there was such a shift in the relation between EURO/USD and gold was back in April 2011 when gold and silver rose very sharply. On the other hand, CAD/USD continues to be correlated in the same direction as in June. As the USD depreciated against the CAD by 0.3%, this may be among the factors to affect the strength of gold.

Gold and Silver Outlook:

Gold is currently experiencing its longest rally in recent months, after it has been falling in the past couple of months. This shift in direction might continue if the US economy will continue to show a slow down on the one hand, and Euro zone's risk premium will keep on rising due to the recent bailouts. This might explain why in recent week not only the Euro/USD declined, but also the USD depreciated against other currencies including CAD.

For further reading:Gold and silver prices outlook for July 2011

By: Lior Cohen, Energy Analyst for Trading NRG

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

DISCLOSURES

News & Analysis at your fingertips.