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
More View more
Real Time News
  • Treasury 30-year yield climbs 10 bp to 2.0953% $XAUUSD $GDX $USD
  • Heads Up:🇺🇸 Fed Chair Powell Testimony due at 14:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • Heads Up:🇺🇸 CB Consumer Confidence (SEP) due at 14:00 GMT (15min) Expected: 114.5 Previous: 113.8 https://www.dailyfx.com/economic-calendar#2021-09-28
  • House Rep Speaker Pelosi says the House could vote on debt limit today - politico
  • The price of Brent crude oil continues to soar, touching highs last seen three years ago as demand outstrips supply. Get your #crudeoil market update from @nickcawley1 here:https://t.co/vrVxkoVBxQ https://t.co/Qf74MIyEmp
  • Heads Up:💶 ECB Panetta Speech due at 13:45 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • $USD fresh 2021 high didn't get much traction on the first test above resistance, but it's been quite the move since last week. Friday should be a big day for the USD - PCE, ISM and Sentiment numbers https://t.co/TfIp6Z8mBr https://t.co/qtFaKzxHIJ
  • Gold and silver not having a good day so far, rising US Treasury yields is a headwind for precious metals and non-interest bearing assets in general #trading $XAUUSD $XAGUSD
  • US 10-YEAR YIELD RISES TO 1.53%, LAST WEEK IT WAS SITTING BELOW 1.30%. THE RAPID INCREASE IN TREASURY RATES IS BAD FOR TECH STOCKS, NASDAQ AT RISK, $ARKK COULD ALSO SUFFER HEAVY LOSSES #TRADIDG $NDX
  • there it is $USDJPY up for a test of the 2021 high fibo level at 111.61, next major level at 112.50 this zone has held the highs in 2019, 2020 and so far in 2021 https://t.co/PwShmUDOn0 https://t.co/in6dnrIq0Q
Gold Price Outlook Shifts Rosy Post FOMC, XAU/USD Eyeing US GDP Data Next

Gold Price Outlook Shifts Rosy Post FOMC, XAU/USD Eyeing US GDP Data Next

Daniel Dubrovsky, Strategist

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

  • Gold prices surged in the aftermath of the FOMC monetary policy decision
  • Broadly still-dovish stance undermining Treasury yields and the US Dollar
  • Softer US second-quarter GDP data may offer further XAU/USD momentum

Anti-fiat gold prices climbed over the past 24 hours following Wednesday’s FOMC monetary policy announcement. The central bank left benchmark lending rates and the pace of quantitative easing unchanged, as widely expected. The details of the statement, as well as Chair Jerome Powell’s press conference, depressed the US Dollar and Treasury yields.

When both the latter are falling, it tends to bode well for XAU/USD given that it is a non-yielding asset. There was a kneejerk reaction to the Fed. Markets were initially spooked by the statement as the central bank noted that the economy made progress to its maximum employment and price stability goals. Policymakers noted that they are closer to tapering.

However, the mood quickly reversed course as it soon became clear that the central bank is still quite dovish. Powell said that the labor market is ‘some ways off’ before reaching substantial further progress. He reiterated that inflation is transitory. Treasury yields quickly turned lower as his commentary likely suggested that tapering is still not quite around the corner just yet, opening the door to optimal stock market conditions.

The first estimate of US second-quarter GDP is due over the coming 24 hours. Annualized growth is expected at 8.5% q/q from 6.4% prior. Atlanta’s Fed GDPNow Q2 real growth estimate has been notably trending lower since April, currently standing at 6.4%. A softer-than-expected outcome could underscore the central bank’s hesitation. If such a result depresses bond yields further, gold could continue benefiting.

Gold Technical Analysis

Gold prices may be readying to extend recent gains after prices recently pierced a near-term falling trendline from earlier this month on the 4-hour chart below. This also follows positive RSI divergence, showing that downside momentum was fading. Extending gains may see prices aim for the July 15th high at 1834. That would also leave XAU/USD back above the 200-period Simple Moving Average.

XAU/USD 4-Hour Chart

Gold Price Outlook Shifts Rosy Post FOMC, XAU/USD Eyeing US GDP Data Next

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