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
Bullish
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
Bullish
Wall Street
Bullish
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
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/3qXauAsm2Q
  • The Dow Jones and S&P 500 nervously face the earnings season as coronavirus deaths could reimpose lockdowns. The DAX 30 eyes an EU rescue package as the FTSE 100 awaits GDP data. Get your #equities update from @ddubrovskyFX here: https://t.co/A0k6JMMBOg https://t.co/iihbEYsfgi
  • It was a surprisingly quiet week in oil, with the net of this week’s price action showing a doji. But a longer-term formation has built that may open the door to that next trend. Get your #commodities update from @JStanleyFX here: https://t.co/zz6M2ce55V https://t.co/UxlbpgLBkq
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/beKjEODs2y
  • RT @RichDvorakFX: @Investingcom Seems to me like investors ‘high’ on central bank liquidity are fiending for more and staring down the edge…
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/b8RNJQKE1m
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/yXomAftdv8 https://t.co/wOQAHZVnxB
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/WS2LkCt9gX
  • Two major events will dominate #Euro trading in the coming week: an #ECB meeting on Eurozone monetary policy, followed by an #EU summit to reach agreement on a recovery fund. Get your #currencies update from @MartinSEssex here: https://t.co/wnXjTDizMv https://t.co/tmxDfkgmSv
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/UQRaKusFP7
Gold Prices Plunge as Easing Market Panic Boosts Bond Yields

Gold Prices Plunge as Easing Market Panic Boosts Bond Yields

2018-08-14 04:00:00
Ilya Spivak, Head Strategist, APAC
Share:

GOLD & CRUDE OIL TALKING POINTS:

  • Gold prices plunge as risk recovery boosts yields while US Dollar holds up
  • Stock index futures hint at deeper losses but headline sensitivity still elevated
  • Crude oil prices looking to API inventory data after aimless seesaw Monday

Gold prices sank to the lowest level in 19 months as the US Dollar held onto its crisis-inspired gains while Treasury bond yields recovered. That undercut support for non-interest-bearing assets epitomized by the yellow metal.

Rates edged up as the dust began to settled after Friday’s bloodletting in emerging markets spilled over into broader risk aversion. Turkey’s central bank announced an emergency liquidity boost, calming investors’ frazzled nerves (at least for now).

Crude oil prices swung lower alongside US shares as EM-related worries resurfaced in the early part of Monday’s Wall Street session, hitting a two-month low. The move proved short-lived however as EIA drilling productivity data showed output from new wells is expected to dip in September.

GOLD MAY EXTEND DROP, API INVENTORY DATA DUE

Looking ahead, futures tracking the FTSE 100 and S&P 500 equity benchmarks are pointing to continued recovery in risk appetite as London and New York come online. That may continue to pull bond yields higher, pressuring gold downward.

The durability of the risk-on recovery is nevertheless at the mercy of incoming news flow. A fresh batch of worrying headlines from Ankara, Moscow or other emerging markets flagged as potential trouble spots in recent days (like India and South Africa) could see sentiment deteriorate anew.

As for crude, API inventory flow statistics are in focus. They will be sized up against forecasts calling for a 2.77 million barrel drawdown to be reported in official EIA figures due Wednesday. If API reports a larger outflow, prices might rise. Needless to say, a smaller one may send them downward.

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

GOLD TECHNICAL ANALYSIS

Gold prices plunged through support marked by the July 2017 low at 1205.02, suffering the largest one-day loss in two months. The next layer of support is at 1176.57, the 38.2% Fibonacci expansion, with a daily close below that exposing the 50% level at 1158.44. Alternatively, a move back above 1205.02 – now recast as resistance – opens the door for a retest of the 1236.66-40.86 area.

Gold Prices Plunge as Easing Market Panic Boosts Bond Yields

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices continue to hover at support-turned-resistance that guided the uptrend from early February. A daily close above its upper boundary at 68.41 opens the door for a retest of the 69.89-70.41 area. Alternatively, a move below the swing low at 65.74 targets the 63.96-64.26 zone.

Gold Prices Plunge as Easing Market Panic Boosts Bond Yields

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.