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
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/UTWxbnNz7M https://t.co/Q5Z63avFT9
  • 🇳🇱 Consumer Confidence (SEP) Actual: -28.0 Previous: -29 https://www.dailyfx.com/economic-calendar#2020-09-22
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.44%, while traders in EUR/JPY are at opposite extremes with 63.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/3GHqQCJAES
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.13% 🇯🇵JPY: 0.13% 🇬🇧GBP: 0.04% 🇨🇭CHF: 0.01% 🇪🇺EUR: -0.02% 🇦🇺AUD: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/8b6rFvHNUQ
  • Heads Up:🇳🇱 Consumer Confidence (SEP) due at 04:30 GMT (15min) Previous: -29 https://www.dailyfx.com/economic-calendar#2020-09-22
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.93% Germany 30: 0.92% FTSE 100: 0.64% US 500: 0.04% Wall Street: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Zmv8UJJiwM
  • #Gold and #Silver are at risk of extending their slide from monthly highs as the lack of additional fiscal stimulus and rising geopolitical tensions underpin #USD https://www.dailyfx.com/forex/market_alert/2020/09/22/Gold-and-Silver-Vulnerable-on-Stagnating-Stimulus-Talks-USD-Resurgence.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $GC $SI $SLV $GLD https://t.co/jtRiglOqXy
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/jFPoXSapC8
  • We start this week off with a threatening drop in risk assets. For the S&P 500, that would be an charged H&S breakdown. Is this the systemic shift that will transition to unquenchable momentum? I discuss that in today's video: https://www.dailyfx.com/forex/video/daily_news_report/2020/09/22/SP-500-and-EURUSD-Escalate-Debate-Even-Further-Was-That-the-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/in3LfrNYrm
  • Heads Up:🇹🇭 Balance of Trade (AUG) due at 03:30 GMT (15min) Previous: $3.34B https://www.dailyfx.com/economic-calendar#2020-09-22
Gold Prices Drop as Risk Recovery Boosts Yields - Now What?

Gold Prices Drop as Risk Recovery Boosts Yields - Now What?

2017-04-20 06:09:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Gold prices fall as risk recovery boosts bond yields, US Dollar
  • Crude oil prices plunge as EIA inventory drawdown disappoints
  • Sentiment trends remain in focus but near-term outlook clouded

Gold prices pulled back as the US Dollar recovered alongside front-end Treasury bond yields, undermining support for non-interest-bearing and anti-fiat assets. A broad-based recovery in risk appetite appeared to drive the move, with rates and the greenback tracking shares upward through Asian and European trade.

Sentiment soured as Wall Street came online, with disappointing EIA inventory data sinking crude oil prices. Energy-linked shares followed suit, dragging down equity averages. Rates managed to hold up however, helped by a sanguine Fed Beige Book and upbeat comments Stanley Fischer and Eric Rosengren.

A quiet economic calendar in the hours ahead. That may put sentiment trends back in control, although it is unclear to what end. Indeed, S&P 500 futures are conspicuously flat heading into the European trading day, suggesting the cautiously upbeat mood on Asian bourses is struggling to extend.

Comments from a gathering of oil industry bigwigs at the Petroleum Media Forum in Ahu Dhabi may prove market-moving, particularly in the context of yesterday’s energy-linked volatility. A policy speech from Fed Governor Jerome Powell is also on the docket.

Have a question about trading gold and crude oil? Join a Q&A webinar and ask it live!

GOLD TECHNICAL ANALYSISGold prices turned lower as expected but failure to break the series of higher highs and lows set from mid-March makes the move appear corrective so far. A daily close below trend line support – now at 1269.83 – would change that, pointing to a larger downward reversal and initially exposing the 14.6% Fibonacci expansion at 1258.62. A formidable wall of resistance stands in the 1288.91-1308.00 area (trend line, April 17 high, former support).

Gold Prices Drop as Risk Recovery Boosts Yields - Now What?

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices turned sharply lower, recoiling from resistance at a falling trend line capping the upside since the beginning of the year. From here, a daily close below the 38.2% Fibonacci expansion at 50.71 exposes the 50% level at 49.78. Alternatively, a move back above the 23.6% Fib at 51.87 targets the 14.6% expansion at 52.58.

Gold Prices Drop as Risk Recovery Boosts Yields - Now What?

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