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
Mixed
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
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
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
  • #Gold saw its worst performance the past 5 days in 5 months as longer-dated government bond yields in developed countries rose Could this be the beginning of a turning point in #XAUUSD? https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/08/15/Gold-Price-Outlook-Will-XAUUSD-Brush-off-Worst-Week-in-5-Months.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/x2Indk3b7P
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/PT09ZsIOCa
  • The US #Dollar may rise, buoyed by haven demand as fiscal stimulus talks stagnate and swelling tensions between Washington and Beijing sink trade talks. Get your #currencies update from @DanielGMoss here: https://t.co/Wcw9PDUr67 https://t.co/gnYZYl6aLV
  • Upside in #CrudeOil struggling ahead of #OPEC meeting. Cartel likely to maintain wait and see approach. Get your #commodities update from @JMcQueenFX here: https://t.co/gNHHKoTUzm https://t.co/eF40DRIBJ5
  • #Gold had some big moves last week, and while vol is expected to die down a bit, it will be important to see if gold can hold its ground in the coming days/weeks. Get your #metals update from @PaulRobinsonFX here: https://t.co/N8a84hRnHN https://t.co/3fjodPHTDm
  • The S&P 500's refusal to hit a record and Dollar's anchor to range this past week is sign of summer liquidity conditions, but the quiet is not insurmountable. 'S&P 500 Record and Dollar Break Look to Stimulus and Trade to Override Seasonality' https://www.dailyfx.com/forex/video/daily_news_report/2020/08/15/SP-500-Record-and-Dollar-Break-Look-to-Stimulus-and-Trade-to-Override-Seasonality-.html https://t.co/mbvPkdQfYl
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkcMZBK https://t.co/kFk6ccU3Sk
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/aXSB0bG3y0
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/1G7CRsegRX https://t.co/i342ipPuvW
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/tHp0Nb3Tr5
Gold Prices Drop as Fed Rate Hike Bets Swell Before Yellen Speech

Gold Prices Drop as Fed Rate Hike Bets Swell Before Yellen Speech

2016-08-22 03:26:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Gold prices drop to range floor on Fed rate hike speculation
  • Crude oil prices extend gains but momentum may be slowing
  • Commodities at risk amid pre-positioning for Yellen speech

Gold prices retreated as US bond yields rose and the Dollar traded broadly higher amid swelling Fed rate hike speculation. The move precedes a much-anticipated speech from FOMC Chair Janet Yellen at the Jackson Hole Symposium this week. Bets on a hawkish posture emerged following a conspicuous about-face in rhetoric from San Francisco Fed President John Williams, whose pronouncements are closely monitored because the markets see him as Yellen’s close confidant.

Williams published a pointedly dovish essay early last week only to be swiftly countervailed by hawkish remarks from New York Fed President Bill Dudley just hours later. Traders took the split as emblematic of deadlock among FOMC officials that would probably delay tightening. Williams was painstakingly back-trackingby Thursday however, speaking almost as though he had been chastised to get back in line. He said he would prefer to hike rates “sooner rather than later” and even echoed Dudley’sworries about the markets’ under-pricing of rate hike probability.

Williams’ reversal appeared to warn that the Fed intends toughen up in the second half of the year, fueling bets that the annual gathering in Wyoming will mark a key inflection point for the US central bank once again. This narrative found a receptive audience in Asia at the beginning of the trading week and may continue to drive price action in the absence of a high-profile event risk on the economic data docket. Crude oil prices may also get pulled into the move as the USD-denominated WTI contract faces de-facto selling pressure, although hopes of an OPEC output deal have proven stubbornly resilient in recent weeks.

Are gold and crude oil prices matching DailyFX analysts’ forecasts? Find out here!

GOLD TECHNICAL ANALYSISGold prices sank back toward the bottom of a range that has continued them since the beginning of August. A daily close below the August 8 low at 1329.79 exposes the 38.2% Fibonacci retracementat 1308.00. Alternatively, a rebound above the 1367.15-77.74 area (double top, 38.2% Fib expansion) targets the 50% threshold at 1398.45.

Gold Prices Drop as Fed Rate Hike Bets Swell Before Yellen Speech

CRUDE OIL TECHNICAL ANALYSISCrude oil prices have extended their winning streak to seven consecutive sessions, marking the longest run of back-to-back gains in 17 months. Momentum has slowed a bit however, with Friday seeing the smallest gain in two weeks. From here, a daily close above the 76.4% Fibonacci retracementat 48.70 targets the June 9 high at 51.64. Alternatively, a turn below the 61.8% level at 46.88 exposes the 50% Fib at 45.41.

Gold Prices Drop as Fed Rate Hike Bets Swell Before Yellen Speech

--- 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

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.