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
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
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 price of #gold may continue to exhibit a bullish behavior in June as the pullback from the yearly high ($1765) reverses ahead of the May low ($1670). Get your Gold market update from @DavidJSong here: https://t.co/OeaYtCpcIo https://t.co/UQVPIVCTCP
  • The $USD breakdown has taken the index into confluence support at the objective yearly open. Get your USD technical analysis from @MBForex here: https://t.co/A16XEv6n4d https://t.co/GzEp3gCAe5
  • US equities continue to run higher with the Nasdaq 100 setting a fresh all-time-high, not even three months after giving back almost a third of its value in about a month. Get your #Nasdaq technical analysis from @JStanleyFX here: https://t.co/1LI54uvI8x https://t.co/e9FvSLqfaA
  • The US Dollar may be at risk to losses against some of its #ASEAN counterparts. USD/SGD, USD/PHP, USD/MYR and USD/IDR have recently broken to the downside. Will losses continue? Find out from @ddubrovskyFX here: https://t.co/0RTlj6maTT https://t.co/UyQ4i0AihI
  • The British Pound technical outlook still seems to favor the downside. GBP/CAD may pressure key rising support from August as GBP/AUD could prolong its downtrend. GBP/CHF may fall. Get your $GBP market update from @ddubrovskyFX here: https://t.co/hBOpDKXmfW https://t.co/AJlT2YKeCu
  • USD/JPY is approaching medium-term uptrend resistance and while the outlook remains constructive, the advance may be vulnerable near-term while below confluence resistance. Get your $USDJPY technical analysis from @MBForex here: https://t.co/93D7AyhHtG https://t.co/KQcLLrkMP3
  • AUD/USD has had the most impressive show of trend over the past couple of months with the pair gaining almost 1500 pips from the March low. Get your $AUDUSD technical analysis from @JStanleyFX here: https://t.co/vLz4Rpln3u https://t.co/AOwnJja5V8
  • Has the #Euro been saved? Find out from @CVecchioFX here: https://t.co/eiXfOTyGa6 https://t.co/AyRiYpb4cN
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/ygwjGNvS61
  • The $USD, Euro, British Pound and Australian Dollar will all be at the mercy of political developments in Asia, Europe and North America this week. An avalanche of PMI data will set the backdrop. Find out from @ZabelinDimitri here: https://t.co/L8cfAgVx94 https://t.co/THWhPAS6AM
Commodities: Gold Rebound May Be Short-Lived on US Inflation Drop

Commodities: Gold Rebound May Be Short-Lived on US Inflation Drop

2013-04-16 11:08:00
Ilya Spivak, Head Strategist, APAC
Share:

Gold prices are correcting higher ahead of the opening bell on Wall Street but an expected drop in US inflation may undermine upward momentum.

Talking Points

  • Gold and Silver Rebound May Be Contained by US CPI Decline
  • Crude Oil, Copper Look to US Housing Data to Extend Recovery

Commodity prices are correcting higher as financial markets digest yesterday’s aggressive flare-up in risk aversion. Sentiment-linked crude oil and copper prices are following S&P 500 index futures higher ahead of the opening bell on Wall Street.

Risk appetite may find added fuel from expected improvements in Housing Starts and Building Permits. US economic data has increasingly underperformed relative to economists’ forecasts since late March however, keeping the door open for downside surprises to punish sentiment anew.

The recovery in gold and silver may be capped even in the event of a broadly risk-on scenario as signs of ebbing inflation sap anti-fiat demand. The US Consumer Price Index report is penciled in to show the year-on-year price growth rate slowed to 1.6 percent in March, matching a six-month low recorded in January.

Want to see economic data releases directly on your charts? Try this App.

WTI Crude Oil (NY Close): $88.71 // -2.58 // -2.83%

Prices declined as expected after putting in a Bearish Engulfing candlestick pattern below resistance at the underside of a previously broken rising trend line set from the March 4 low. Sellers are now testing below support is at 86.67, the 123.6% Fibonacci expansion, with a break below that exposing the 138.2% level at 85.38. Near-term resistance is at 88.77, the 100% Fib.

Commodities_Gold_Rebound_May_Be_Short-Lived_on_US_Inflation_Drop_body_Picture_4.png, Commodities: Gold Rebound May Be Short-Lived on US Inflation Drop

Daily Chart - Created Using FXCM Marketscope 2.0

Spot Gold (NY Close): $1347.95 // -135.05 // -9.11%

Prices took out support at 1397.50, the 100% Fibonacci expansion. Sellers now target the 123.6% mark at 1303.50, with a break below that aiming for the 138.2% Fib at 1245.35. The 1397.50 mark has been recast as near-term resistance. A reversal back above that eyes the 76.4% expansion at 1491.50.

Commodities_Gold_Rebound_May_Be_Short-Lived_on_US_Inflation_Drop_body_Picture_3.png, Commodities: Gold Rebound May Be Short-Lived on US Inflation Drop

Daily Chart - Created Using FXCM Marketscope 2.0

Spot Silver (NY Close): $22.76 // -3.25 // -12.50%

Prices are correcting higher after taking out support at 24.12, the 100% Fibonacci expansion. This barrier has been recast as near-term resistance, with a reversal back above it targeting the 76.4% mark at 26.77. Near-term support is at 21.46, the 123.6% Fib.

Commodities_Gold_Rebound_May_Be_Short-Lived_on_US_Inflation_Drop_body_Picture_2.png, Commodities: Gold Rebound May Be Short-Lived on US Inflation Drop

Daily Chart - Created Using FXCM Marketscope 2.0

COMEX E-Mini Copper (NY Close): $3.272 // -0.078 // -2.33%

Prices are testing support at 3.265, the 38.2% Fibonacci expansion. A break downward exposes the 50% level at 3.208. Near-term resistance is at 3.336, the 23.6% Fib, with a move back above that eyeing the April 9 swing high at 3.451.

Commodities_Gold_Rebound_May_Be_Short-Lived_on_US_Inflation_Drop_body_Picture_1.png, Commodities: Gold Rebound May Be Short-Lived on US Inflation Drop

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, please CLICK HERE

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

DISCLOSURES

News & Analysis at your fingertips.