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
GBP/USD
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
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Your psychology has a significant impact on the decisions you make, particularly if you are new to trading. How can you avoid your emotions from turning you into a #FOMO trader? Find out: https://t.co/FC7CHpk9vA #FOMOintrading https://t.co/WSDr3JkpAG
  • $AUDUSD: Short-term support could lead-in to a quick bounce up to resistance as taken from another prior support level, plotted around the .6830 level on the chart. Get your market update from @JStanleyFX here: https://t.co/tUoe1Roo5t https://t.co/omaDxGNhZU
  • Central bank independence has several advantages. Find out what they are in detail with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/cQQmuH8biQ
  • The US Dollar remains in consolidation mode against the Philippine Peso and Indian Rupee. Will the Singapore Dollar weaken as $USDSGD rising support holds ahead? Find out from @ddubrovskyFX here: https://t.co/HZ8Loqj3Ey https://t.co/6PCFkdj3ka
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/Da10QUg9r1
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
Gold Prices May Bounce as Markets Eye ECB Meeting, US CPI Data

Gold Prices May Bounce as Markets Eye ECB Meeting, US CPI Data

2019-09-10 05:00:00
Ilya Spivak, Sr. Currency Strategist
Share:

GOLD & CRUDE OIL TALKING POINTS:

  • Gold prices drop to four-week low after near-term support break
  • Crude oil prices rise alongside stocks amid risk appetite recovery
  • Commodities may retrace with ECB meeting, US CPI data eyed

Gold prices continue to track lower inversely of a recovery in bond yields. The move seems to reflect ebbing political risk in Italy, Hong Kong and the UK as well as hopes for progress in another round of US-China trade negotiations. Higher rates tarnish the appeal of non-interest-bearing assets, like the yellow metal.

Meanwhile, cycle-sensitive crude oil prices have taken the opposite side of the same narrative. The same pro-risk push across global financial markets that has weighed on gold (as well as anti-risk currencies like the Yen and US Dollar) seems to have driven the WTI benchmark upward alongside stocks.

GOLD MAY REBOUND AS CRUDE OIL BACKTRACKS BEFORE ECB, US CPI

A relatively quiet day on the economic data docket offers relatively few roadblocks for established momentum, but market cheer may ebb all the same as traders show restraint ahead of Thursday’s heavy-duty event risk. The ECB rate decision and US CPI data are due.

The Eurozone monetary authority is widely expected to boost stimulus. That will make it hard for President Mario Draghi and company to delivery a sentiment-boosting dovish surprise. Meanwhile, core inflation in the US is expected to accelerate, which may be seen as reducing scope Fed rate cuts.

On balance, this means that market participants might be reluctant to commit to big risk-on bets, with some that have already participated in the week-long sentiment recovery even moved to reduce exposure. This could nudge gold upward even as it pulls down on crude oil in the near term.

Get our free guide to help build confidence in your gold and crude oil trading strategy!

GOLD TECHNICAL ANALYSIS

Gold prices continue to push lower having established a swing top below resistance at 1563.00 – a weekly chart inflation point – as expected. Initial support is at 1480.00, the August low, with a daily close below that setting the stage for a test of the 1437.70-52.95 area.

Gold price chart - daily

Gold price chart created using TradingView

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices broke resistance capping them since late April, opening the door to challenge the 60.04-84 area. For sellers to reclaim the initiative, a daily close below upward-sloping support set from the August 7 low – now at 54.57 – seems necessary. Downside hurdles at 52.96 and near the 50.00 mark follow.

Crude oil price chart - daily

Crude oil price chart created using TradingView

COMMODITY TRADING RESOURCES

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

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

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

DISCLOSURES

News & Analysis at your fingertips.