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
Wall Street
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
More View more
Real Time News
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/stMPuq0VXR
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
Gold Prices May Reverse, US Dollar Sinks as Fed Juices Wall Street

Gold Prices May Reverse, US Dollar Sinks as Fed Juices Wall Street

Daniel Dubrovsky, Strategist

Gold, XAU/USD, US Dollar, Crude Oil, Fed, OPEC – Asia Pacific Market Open

Gold Prices Soar on More Fed Stimulus as Crude Oil Prices Look Past OPEC+

Gold prices rallied on Thursday despite a rather rosy session on Wall Street. The Dow Jones and S&P 500 closed +1.22% and +1.45% respectively to wrap up the holiday-shortened week. This is despite the ongoing onslaught of dismal US economic data that is being plagued by the coronavirus outbreak. Jobless claims surged 6.6 million last week, well above the 5.5m estimate and slightly lower than the previous 6.8m gain.

Meanwhile University of Michigan Sentiment printed 71.0 in April, down from 89.1 prior. The velocity of the drop off was the worst on record as it reached the lowest since 2011. What drove focus away from the harsh economic reality was arguably further supportive measures from the Federal Reserve. The central bank announced a whopping $2.3 trillion loan program and this is on top of its “open-ended” QE plan.

The haven-linked US Dollar tumbled alongside front-end government bond yields, boosting anti-fiat gold prices. Meanwhile crude oil prices were unable to capitalize on a deal between OPEC+ members to reduce output by 10 million barrels per day. The markets may have viewed their efforts as insufficient to offset the anticipated hit to demand, equating into a buy the rumor and sell the facts situation.

Members said that they wanted G-20 nations to contribute reducing production by an additional 5m b/d. Mexico walked away from the meeting altogether, perhaps raising further doubts on whether or not other countries could join in such as the United States. Focusing back on foreign exchange markets, the sentiment-linked Australian Dollar was the best-performing major currency.

Friday’s Asia Pacific Trading Session

The Good Friday holiday means that a few exchanges will be closed during today’s Asia Pacific trading session. While Australian markets are closed, Japanese ones will be online. A lack of major economic data places the focus for foreign exchange markets on risk trends.

Lower-than-usual liquidity conditions are to be expected and given general elevated volatility levels, FX can be susceptible to sudden breaking headlines. Cautious optimism may continue boosting the Aussie while placing the US Dollar at risk. That may also boost gold prices.

Gold Technical Analysis

Gold prices may be at risk to a turn lower as the yellow metal approaches a critical resistance barrier. This is a range between 1679 to 1703 which also includes the 2013 peak. In the background, a Rising Wedge has been brewing since prices bottomed last month.

This is a bearish pattern whereby a close under rising support may open the door to a reversal of the near term uptrend. Negative RSI divergence is also present, showing fading upside momentum. A turn lower places the focus on key support at 1643.

XAU/USD 4-Hour Chart

Gold Prices May Reverse, US Dollar Sinks as Fed Juices Wall Street

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES