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. See our updated Privacy Policy here.

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
Subscribe
Please try again
Wall Street
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
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/bde30KM8OE
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
Gold Prices May Fall Further as US Dollar Recovery Continues

Gold Prices May Fall Further as US Dollar Recovery Continues

Ilya Spivak, Head Strategist, APAC

GOLD & CRUDE OIL TALKING POINTS:

  • Gold prices sink as the US Dollar deftly juggles haven-, yield-based appeal
  • Crude oil prices bounce as OPEC+ officials hint at new output cuts in 2019
  • S&P 500 futures hint at risk-on bias, Adipec chatter may be market-moving

Gold prices fell even as bond yields tracked stocks lower and the priced-in rate hike path implied in Fed Funds futures flattened Friday. The US Dollar found renewed haven appeal against the risk-off backdrop, and its rise undermined the appeal of anti-fiat alternatives epitomized by the yellow metal.

Crude oil prices also tracked lower, succumbing to de-facto selling pressure because they are denominated in USD terms on global markets. A spirited recovery has been triggered over the weekend however – producing an upward gap at Monday’s trading open – after OPEC+ officials worried aloud about oversupply in 2019.

Markets seemed to read that as signaling that the cartel and like-minded producers – notably, Russia – may cut output quotas once again having raised earlier this year. That was meant to cushion the blow from the sidelining of shipments from Iran after the re-imposition of US sanctions.

GOLD DROP MAY CONTINUE, CRUDE OIL EYES ADIPEC

Looking ahead, gold may continue to suffer as risk appetite recovers. S&P 500 futures are pointing convincingly higher ahead of the opening bell on Wall Street, hinting that a recovery in yields is poised to pressure non-interest-bearing alternatives.

For its part, the Greenback seems to have become adept at pivoting from haven- to policy-based arguments for gains. Indeed, it is marching higher alongside US stock futures and Treasury yields in late Asia Pacific trade. More of the same is a toxic mix for gold.

Meanwhile, crude oil might find support from chatter emerging out of the Abu Dhabi International Petroleum Exhibition and Conference (Adipec). A slew of OPEC+ bigwigs are in attendance. They will probably continue to jawbone prices upward with allusions to cutting production levels anew.

A stronger US Dollar and hefty incoming event risk might temper upside follow-through however. Upcoming data flow seems ominous for anti-USD assets while EIA drilling productivity statistics and an annual IEA energy outlook report may highlight headwinds from swelling US output.

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

GOLD TECHNICAL ANALYSIS

Gold prices pushed through range support in the 1211.05-14.30 area, exposing a rising trend line at 1198.51. A further push below that targets the 1180.86-87.83 zone. Alternatively, a move back above 1214.30 exposes the 1260.80-66.44 region next.

Gold Prices May Fall Further as US Dollar Recovery Continues

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices are probing back above the $60/bbl figure. A daily close back above this barrier paves the way to retest support-turned resistance marked by the April 6 lowat 61.84, followed by a falling trend line at 63.20. Alternatively, a reversal back below the 60.00 aims for the February 9 low at 58.11. The longer-term chart setup hints a major top has been established.

Gold Prices May Fall Further as US Dollar Recovery Continues

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