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
Mixed
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.79% 🇨🇦CAD: 1.33% 🇳🇿NZD: 1.31% 🇪🇺EUR: 0.20% 🇯🇵JPY: 0.19% 🇨🇭CHF: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/q2qAPkPXZi
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.29% Wall Street: 0.27% Germany 30: 0.08% FTSE 100: -0.00% France 40: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vHF9F2qb4Z
  • Happy Monday traders! What does the new month bring? Are we looking at positive sentiment but not much momentum❔ What are the market highlights heading into New York open? Find out from @DailyFX Chief Strategist, @JohnKicklighter 👇 https://t.co/xaHZXjZdZr
  • US Treasury Secretary Steven Mnuchin to hold call with G-7 finance ministers on Wednesday per his public schedule $DXY
  • Overlay that with google search terms for “protest” and “riots” and you see a similar uptick. Last time we saw a surge in these search terms was back in August 2019 and we saw a lot of volatility ensue shortly after. https://t.co/ZXAkgRWfAB
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.48% 🇳🇿NZD: 1.14% 🇨🇦CAD: 0.98% 🇯🇵JPY: 0.20% 🇪🇺EUR: 0.19% 🇨🇭CHF: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/q8shAF6mG4
  • #IBEx35: a punto de romper el rango para situarse en los niveles previos a la crisis #trading https://t.co/H9DbLtpdox
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 2.12% FTSE 100: 1.61% France 40: 1.56% Wall Street: 0.42% US 500: 0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/M3rd9RjKa0
  • EUR/JPY Forecast: Euro vs JPY Price Flirts With 120.00 Threshold More details in the link: https://www.dailyfx.com/forex/technical/home/analysis/eur-jpy/2020/06/01/EURJPY-Forecast-Euro-vs-JPY-Price-Flirts-With-120.00-Threshold-MK.html?CHID=9&QPID=917714 https://t.co/Hh9ZAi5YX4
  • 🇲🇽 Markit Manufacturing PMI Actual: 38.3 Previous: 35 https://www.dailyfx.com/economic-calendar#2020-06-01
Gold Prices May Bounce as Markets Digest Post-Fed Volatility

Gold Prices May Bounce as Markets Digest Post-Fed Volatility

2016-12-16 05:46:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Gold prices slide to ten-month low in FOMC meeting aftermath
  • Crude oil prices fall on Libya output boost but momentum fizzles
  • Rethink of the 2017 Fed policy bets may shape near-term trade

Gold prices continued to sink as markets grappled with the outcome of the FOMC monetary policy announcement. The central bank delivered a widely expected rate hike but went off the priced-in script in projecting three further increases in the baseline lending rate next year.

Crude oil prices dipped intraday but ultimately finished the day little-changed. The drop may have followed news that Libya will reopen two of its biggest extraction sites as well as send the shipment in two years from its largest export terminal.

Looking ahead, a lull in high-profile event risk may make for a quiet end to the trading week. A rethink of the post-FOMC narrative is also not out of the question. Markets clearly saw that Fed forecasts are not a guarantee in 2016 and much depends on still-uncertain US fiscal policy.

The emergence of this narrative just ahead of the year-end liquidity drain and with many benchmark assets looking somewhat stretched may stoke profit-taking. That has scope to boost gold prices. The implications for crude oil are less clear-cut as prices reconcile the influence of OPEC and that of the Fed.

See the schedule of upcoming webinars and join us LIVE to follow the financial markets!

GOLD TECHNICAL ANALYSISGold prices accelerated downward, hitting the weakest level since early February. From here, a daily close below the 50% Fibonacci expansion at 1112.37 exposes the 61.8% level at 1094.56. Alternatively, a reversal back above the 38.2% Fib at 1130.18 targets the 23.6% expansion at 1152.21.

Gold Prices May Bounce as Markets Digest Post-Fed Volatility

CRUDE OIL TECHNICAL ANALYSISCrude oil prices paused to digest losses after dropping to the lowest level in a week. Near-term support is now at 49.78, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis targeting the 50% level at 48.33. Alternatively, a move back above the 23.6% Fib at 51.58 exposes the 14.6% retracement at 52.58.

Gold Prices May Bounce as Markets Digest Post-Fed Volatility

--- 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.