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
EUR/USD
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
Oil - US Crude
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
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
Gold
Mixed
GBP/USD
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
USD/JPY
Bullish
More View more
Real Time News
  • Speaker Pelosi aiming for $2.4 trillion in stimulus proposal according to aides - BBG
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 1.29% Gold: 0.33% Oil - US Crude: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/vGkrwaFvt1
  • Fragile risk sentiment has continued to benefit the US Dollar, which has taken the title of the preferred safe-haven from the likes of the Japanese Yen and Swiss Franc. Get your market update from @JMcQueenFX here: https://t.co/jAFn7qGcbd https://t.co/nWLD7cSQUO
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.89%, while traders in EUR/GBP are at opposite extremes with 66.41%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fWlXXvQUkT
  • 🇲🇽 Interest Rate Decision Actual: 4.5% Expected: 4.25% Previous: 4.5% https://www.dailyfx.com/economic-calendar#2020-09-24
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.97% Wall Street: 0.92% France 40: 0.66% FTSE 100: 0.62% Germany 30: 0.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SmPAA5CRPL
  • RT @FinancialJuice: US JUDGE: THE US MUST DELAY TIKTOK DOWNLOAD BAN OR FILE LEGAL PAPERS BY FRI. 2:30 PM ET DEFENDING THE BAN. - COURT ORDE…
  • Fed's Barkin says markets appear to be more concerned about inflation being low, not high $SPX $XAUUSD
  • Heads Up:🇺🇸 Fed Williams Speech due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-24
  • Heads Up:🇲🇽 Interest Rate Decision due at 18:00 GMT (15min) Expected: 4.25% Previous: 4.5% https://www.dailyfx.com/economic-calendar#2020-09-24
Gold Prices May Continue Lower as ECB Boosts Risk Appetite

Gold Prices May Continue Lower as ECB Boosts Risk Appetite

2016-07-21 08:35:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Gold prices resume descent after brief consolidative pause
  • Crude oil prices recoil from familiar range support again
  • Supportive ECB rhetoric may boost market-wide sentiment

Gold prices slumped as risk appetite firmed across financial markets, pushing bonds lower and boosting yields to undermine demand for non-interest-bearing assets. The move began with an upbeat post-Brexit assessment from the Bank of England and continued as most US companies due to report second-quarter earnings delivered results beating consensus forecasts.

Crude oil prices found added support beyond the risk-on environment after the EIA reported that inventories fell by -2.3 million barrels last week, a larger drawdown than the -1.3 million outflow expected by economists. The larger drop was telegraphed in private-sector estimates from API yesterday.

Looking ahead, the ECB interest rate decision looms large as a potent driver of price action. An outright change in the policy stance seems unlikely but comments from President Mario Draghi may prove formative for sentiment trends.

Rhetoric suggesting officials stand ready to expand stimulus if post-Brexit contagion intensifies while helping shore up Italian banks is likely to boost risk appetite. This may compound pressure on gold while offering a further lift to the WTI contract. An indecisive posture will probably have the opposite effect.

Track key short-term levels and price patterns for gold and crude oil with our GSI indicator!

GOLD TECHNICAL ANALYSISGold prices accelerated lower after a brief pause following the break of support in the 1330.22-32.17 area (July 12 low, 23.6% Fibonacci retracement). A further push below the 38.2% level at 1308.00 targets the 50% Fib at 1287.30. Alternatively, a daily close back above 1333.62 exposes the 14.6% retracement at 1349.42.

Gold Prices May Continue Lower as ECB Boosts Risk Appetite

CRUDE OIL TECHNICAL ANALYSISCrude oil prices recoiled from familiar range support above the $44/bbl figure once again. From here, a daily close above the intersection of trend line resistance and the 14.6% Fibonacci expansionat 48.14 targets the 50.45-51.64 area (23.6% Fib, June 9 high). Alternatively, a reversal below the July 11 low at 44.40 exposes the 38.2% Fib retracement at 41.86.

Gold Prices May Continue Lower as ECB Boosts Risk Appetite

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

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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

DISCLOSURES