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
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/z7ogzy00dy
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/g7iT8bpi7f
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/d3OFc4yGao #tradingstyle https://t.co/wQ1MAkOb0n
  • The UK population voted the Conservative government back in with a strong majority, giving PM Johnson the backing to push Brexit through. And Sterling (GBP) likes it. Get you $GBPUSD market update from @nickcawley1 here: https://t.co/tjCHWDxoWm https://t.co/Z7Vaadxy5r
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your $gld markets news from @IlyaSpivak here:https://t.co/4lHhHsby56 https://t.co/zF4EyLIRWM
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/tcjkQnaBWl
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/bDXG2dV3wG
  • The US Dollar technical outlook against the Euro, British Pound, Australian Dollar and New Zealand Dollar are discussed. Large wicks left signs of indecision, will reversals follow? $EURUSD $GBPUSD $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/15/US-Dollar-Technical-Outlook-EURUSD-GBPUSD-AUDUSD-NZDUSD.html?CHID=9&QPID=917702 https://t.co/dpuIppxo3F
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/y3cckNW22W https://t.co/vUQyVl6b0e
  • Growth linked currencies have gained as investors hope for progress on the trade front as well as stimulus from the Fed. The global economy however remains depressed and seems likely to remain so. Get your market update from @DavidCottleFX here: https://t.co/jt1HH9AHLM https://t.co/Yz65AMJYlm
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, Sr. Currency Strategist
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.