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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • 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/5uSWKoLkd6 https://t.co/q80wSAoxXP
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:https://t.co/ed4QR7QQOn https://t.co/gDWYNtm2UY
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/Q7TcbrYXjl
Gold Prices Rise as North Korea Tensions Keep Markets on Edge

Gold Prices Rise as North Korea Tensions Keep Markets on Edge

2017-04-16 23:46:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Gold prices rise as North Korea tensions spook risk appetite
  • Hawkish comments from Fed’s Fischer may gap gold gains
  • Crude oil prices look to EIA output data for direction clues

Gold prices rose as a dour mood prevailed in thin holiday trade. Stocks in Japan – one of the few major markets not closed for the Easter Monday holiday – declined in a move that appeared linked to geopolitical jitters after North Korea conducted a ballistic missile test (albeit unsuccessfully).

Investors appear concerned about escalation after reports emerging Friday said the administration would adopt a policy of “maximum pressure and engagement” in their approach to relations with Pyongyang. US Vice President Mike Pence is on a 10-day trip in the region to, among other things, pitch the new approach.

The US Dollar fell alongside benchmark US Treasury bond yields and the priced-in 2017 rate hike path implied in Fed Funds futures flattened. Not surprisingly, this helped the relative appeal of anti-fiat and non-interest-bearing assets.

Scheduled comments from Fed Vice Chair Stanley Fischer are in focus from here. Reaffirmation of the central bank’s intent to continue tightening amid signs of a significant slowdown in the first quarter may weigh on the yellow metal, though downward follow-through may be limited as political concerns persist.

Meanwhile, crude oil prices will look to the monthly EIA Drilling Productivity report for direction clues. Traders will look to the document for clues about the extent to which the rebound in US output will offset upward price pressure from an OPEC-led production cut scheme.

What will drive gold price trends through mid-year? See our forecast to find out!

GOLD TECHNICAL ANALYSISGold prices continue to push higher, with buyers setting their sights on the $1300/z figure. Breaking above the 1302.90-08.00 area (76.4% Fibonacci expansion, former support) on a daily closing basis exposes the 100% levelat 1336.19. Alternatively, a move back below the 61.8% Fib at 1282.31 targets the 1263.87-65.66 region (50% expansion, February 27 high).

Gold Prices Rise as North Korea Tensions Keep Markets on Edge

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are waiting for fresh catalysts after recoiling from a one-month high. Support is marked by the 38.2% Fibonacci expansionat 52.04, with a daily close below that targeting the 23.6% level at 50.14. Alternatively, a move above the 50% Fibat 53.57 exposes the 55.10-21 area (January 3 high, 61.8% expansion).

Gold Prices Rise as North Korea Tensions Keep Markets on Edge

Chart created using TradingView

--- 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