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
Bullish
GBP/USD
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
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
Gold
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
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Japan's Economy Minister Yasutoshi Nishimura: See Japan's economy as gradually recovering, consumption drop not as large as after last tax hike -BBG
  • LIVE IN 30 MIN: Senior Currency Strategist @IlyaSpivak discusses the technical and fundamental AUD/USD outlook for the week ahead here - https://www.dailyfx.com/webinars/378612179?CHID=9&QPID=917720
  • The Australian Dollar is vulnerable to volatility on the Fed and UK General Election after Chinese CPI data surprised higher. I discuss the technical outlook in $AUDUSD and $AUDJPY here #AUD #TradeWar - https://www.dailyfx.com/forex/market_alert/2019/12/10/Australian-Dollar-Outlook-in-AUDUSD-AUDJPY-After-China-CPI.html?CHID=9&QPID=917702 https://t.co/ljRFPxpV3F
  • #Euro area stocks may be preparing to break the four-month uptrend built around hopes for a US-China trade deal and an orderly #Brexit outcome. Get your market update from @IlyaSpivak here: https://t.co/ujlCJiXLvh https://t.co/BKsK4Zpccw
  • CPI in fact is at its highest point since January 2012 https://t.co/2XPVc7RxbB
  • China CPI and PPI came in better than expected but #AUDUSD isn't really giving much of a reaction, suggesting traders are waiting for the December 15 tariff decision and other major fundamental developments this week like the FOMC rate decision
  • 🇨🇳 CNY Producer Price Index (YoY) (NOV), Actual: -1.4% Expected: -1.5% Previous: -1.6% https://www.dailyfx.com/economic-calendar#2019-12-10
  • 🇨🇳 CNY Consumer Price Index (YoY) (NOV), Actual: 4.5% Expected: 4.3% Previous: 3.8% https://www.dailyfx.com/economic-calendar#2019-12-10
  • The $AUD erased half of November’s down move in a mere two days but the dominant trend bias continues to favor weakness ahead. Get your market update from @IlyaSpivak here:https://t.co/ShYksfwmHk https://t.co/W9iOmofo7d
  • Heads Up:🇨🇳 CNY Producer Price Index (YoY) (NOV) due at 01:30 GMT (15min), Actual: N/A Expected: -1.5% Previous: -1.6% https://www.dailyfx.com/economic-calendar#2019-12-10
Gold Prices Echo Externally Inspired US Dollar Volatility, RBA on Tap

Gold Prices Echo Externally Inspired US Dollar Volatility, RBA on Tap

2018-08-07 03:30:00
Ilya Spivak, Sr. Currency Strategist
Share:

GOLD & CRUDE OIL TALKING POINTS:

  • Gold prices echo externally-inspired US Dollar price swings
  • Crude oil price rally fizzles as Saudi exports hit one-year high
  • RBA may indirectly influence gold as oil eyes EIA, API data

Gold prices declined as the US Dollar returned to the offensive, sapping the appeal of anti-fiat alternatives epitomized by the yellow metal. The greenback rose to the highest level in 13 months against an average of its major counterparts. Meanwhile, a sentiment-driven rally in crude oil prices was aborted as reports of swelling Saudi exports crossed the wires.

RBA IMPACT MAY ECHO IN GOLD PRICES, OIL EYES EIA AND API DATA

Looking ahead, gold prices may continue to reflect externally-driven US Dollar volatility. A lull in top-tier economic news flow might see the benchmark currency reflecting the knock-on effects of price swings in some of its key crosses. Yesterday, that was GBP/USD. Today it might be AUD/USD if that pair turns volatile following the RBA monetary policy announcement.

As for crude, it will size up the EIA Short-Term Energy Outlook report as well as the weekly inventory flow statistics from API. The former will help gauge the extent to which swelling US output can offset reduced supply from Iran, where sanctions are being re-imposed as of today. The latter will be judged against expectations for a 1.79 million barrel outflow to be reported in official DOE figures on Wednesday.

Learn what other traders’ gold buy/sell decisions say about the price trend!

GOLD TECHNICAL ANALYSIS

Gold prices recoiled from trend line resistance, sinking back toward the 17-month low set last week. A move belowthe 38.2% Fibonacci expansion at 1197.94 sees the next downside barrier at 1186.42, the 50% level. Alternatively, a daily close above trend resistance – now at 1212.14 – initially targets former support at 1236.66.

Gold Prices Echo Externally Inspired US Dollar Volatility, RBA on Tap

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices remain locked in a range above trend support set from early February. From here, a daily close above the 23.6% Fibonacci expansion at 70.99 targets the 38.2% level at 73.49. Alternatively, a breach below the outer layer of trend support – now at 66.77 – exposes the 63.96-64.26 area.

Gold Prices Echo Externally Inspired US Dollar Volatility, RBA on Tap

COMMODITY TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.