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
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
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/t34kotPE8R
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/lM1OIJdjhr
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/6qGEVjDlN6
Gold Price Outlook: US Retail Sales, University of Michigan Sentiment in Focus

Gold Price Outlook: US Retail Sales, University of Michigan Sentiment in Focus

Daniel Dubrovsky, Strategist

Gold, XAU/USD, Fed, Jerome Powell, US Retail Sales, Technical Analysis - Talking Points:

  • Gold prices traded flat as risk aversion boosted USD, sank bond yields
  • Rosy US retail sales and University of Michigan sentiment are key risks
  • XAU/USD may form bullish crossover between key SMAs on 4-hour chart

Anti-fiat gold prices traded relatively flat over the past 24 hours, struggling to add to gains developed since late May. The yellow metal was facing conflicting fundamental forces. Longer-term Treasury yields declined on Thursday as the US Dollar strengthened. This likely reflected investors seeking safety as stocks on Wall Street weakened. The Nasdaq Composite finished 0.70% lower.

Weakness in US equities followed Fed Chair Jerome Powell’s testimony to Congress. The central bank Chief continued to downplay recent rising inflationary pressures, adding that the economic recovery had not progressed enough to proceed with tapering asset purchases. Meanwhile, rising Covid cases amid the emerging Delta variant have likely been pouring cold water on the recovery outlook.

With that in mind, XAU/USD is eyeing a couple of key US economic event risk heading into the weekend. Retail sales and University of Michigan sentiment are due to cross the wires over the remaining 24 hours. The former is expected to clock in at -0.3% m/m in June. Preliminary estimates for the latter are anticipated at 86.5.

According to the Citi Economic Surprise Index, US data has been tending to outperform relative to expectations as of late. However, the margin of rosy surprises has been notably shrinking over the past year. Still, upside outcomes from retail sales and consumer sentiment could help improve the economic outlook. If bond yields and the US Dollar follow higher as a result, gold could stand to lose to wrap up the week.

Gold Technical Analysis

On the 4-hour chart, gold recently pierced the 1810 – 1818 zone of resistance. XAU/USD is attempting to hold a push above the 200-period Simple Moving Average (SMA). Meanwhile, the 50-period SMA is creeping higher. A bullish crossover may occur in the near term, opening the door to a broader upside technical bias. Still, negative RSI divergence warns to proceed with caution.

XAU/USD 4-Hour Chart

Gold Price Outlook: US Retail Sales, University of Michigan Sentiment in Focus

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES