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
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • The price of #gold plunged 1% immediately after the stunning US jobs report crossed the wires. Get your market update from @RichDvorakFX here: https://t.co/8i0L6YIqjy https://t.co/y9dIXazJf9
  • S&P 500, Dow Jones, Nasdaq explode higher with stocks surging in response to shockingly better-than-expected monthly jobs data. Get your #equities market update from @RichDvorakFX here: https://t.co/nuMVWOzzuC https://t.co/M3nGBjd7kZ
  • The record-breaking NFPs increase behind us and the FOMC rate decision on Wednesday sets the tone for my trading video: 'Dow Soars Above 200-Day Average on NFPs, Will the #Fed Keep the Dollar Sliding' https://www.dailyfx.com/forex/video/daily_news_report/2020/06/06/Dow-Soars-Above-200-Day-Average-on-NFPs-Will-the-Fed-Keep-the-Dollar-Sliding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/kquvec5HVc
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/OsaphmqEmu
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/kgddX1ZHe4
  • I approve of this dry humor. https://t.co/b42GmIZDlL
  • The US Dollar may be at risk to losses against some of its #ASEAN counterparts. USD/SGD, USD/PHP, USD/MYR and USD/IDR have recently broken to the downside. Will losses continue? Find out from @ddubrovskyFX here: https://t.co/0RTlj6maTT https://t.co/59cdbPc4l7
  • The #Nikkei 225 trades at 4-month highs after a 50% surge from the March low, while the RSI registers its first overbought readings since November 2019. Get your market update from @DanielGMoss here: https://t.co/pOEt698Ooi https://t.co/EHD2EHmQLW
  • The British Pound technical outlook still seems to favor the downside. GBP/CAD may pressure key rising support from August as GBP/AUD could prolong its downtrend. GBP/CHF may fall. Get your $GBP market update from @ddubrovskyFX here: https://t.co/hBOpDKXmfW https://t.co/8gGfGuw87o
  • The $USD breakdown has taken the index into confluence support at the objective yearly open. Get your USD technical analysis from @MBForex here: https://t.co/A16XEv6n4d https://t.co/VFxFMFWJ5L
Gold Prices Rise After SOTU Speech But Hawkish Fed May Cap Gains

Gold Prices Rise After SOTU Speech But Hawkish Fed May Cap Gains

2018-01-31 10:30:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

Gold prices languished, with a brief intraday rally erased by the close of trade in North America as markets looked on to the upcoming State of the Union address, the first to be delivered by Donald Trump. An underwhelming outing has since weighed on the US Dollar, offering the yellow metal a modest lift.

All eyes now turn to the FOMC rate decision. A marked change in the policy stance seems overwhelmingly unlikely as Janet Yellen hands off the reins to incoming Chair Jerome Powell. A recent uptick in inflation expectations might make for a slightly hawkish tone however, capping any nascent gold recovery.

Crude oil prices remain anchored to overall market sentiment trends, with the WTI contract dropping alongside the benchmark S&P 500 yesterday. US stock index futures are pointing convincingly higher ahead of the opening bell on Wall Street however, hinting that a bit of a respite may be in the cards.

On the data front, EIA inventory data is expected to show stockpiles added 1.88 million barrels last week. That would mark the first build in 10 weeks. API reported a more dramatic 3.23 million barrel gain yesterday. Any sentiment-linked gains may be dented if official figures print closer to that outcome.

See our free guide to learn what are the long-term forces driving crude oil prices!

GOLD TECHNICAL ANALYSIS – Gold prices paused to digest losses but the path of least resistance still seems to favor the downside after the appearance of a bearish Dark Cloud Cover led to topping, as expected. From here, a daily close below the 11316.50-25.96 area (January 4 high, 38.2% Fibonacci retracement) targets the 50% level at 1301.19. Alternatively, a move back above 1344.74-50.32 (support-turned-resistance, trend line) opens the door for a retest of the January 25 high at 1366.06.

Gold Prices Rise After SOTU Speech But Hawkish Fed May Cap Gains

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices broke downward as expected, with sellers now aiming to challenge the 38.2% Fibonacci retracement at 62.62. A further push below that exposes the 50% level at 61.38. Alternatively, a move back above support-turned-resistance in the 64.15-86 area (January 15 high, 23.6% Fib) paves the way to revisit the January 25 highat 66.63.

Gold Prices Rise After SOTU Speech But Hawkish Fed May Cap Gains

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

News & Analysis at your fingertips.