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.

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
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Mixed
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
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Join @MBForex at 8:30 AM ET/12:30 PM GMT for his weekly strategy #webinar Register here: https://t.co/VAnAfZU02T https://t.co/57Z0cB6HsJ
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-28
  • 🇲🇽 Unemployment Rate (AUG) Actual: 5.2% Previous: 5.4% https://www.dailyfx.com/economic-calendar#2020-09-28
  • 🇲🇽 Unemployment Rate (AUG) Actual: 5.2% Previous: 5.4% https://www.dailyfx.com/economic-calendar#2020-09-28
  • 🇲🇽 Balance of Trade (AUG) Actual: $6.116B Previous: $5.799B https://www.dailyfx.com/economic-calendar#2020-09-28
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.52%, while traders in EUR/GBP are at opposite extremes with 63.81%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/omse6hWKhs
  • Heads Up:🇲🇽 Unemployment Rate (AUG) due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-28
  • Heads Up:🇲🇽 Balance of Trade (AUG) due at 11:00 GMT (15min) Previous: $5.799B https://www.dailyfx.com/economic-calendar#2020-09-28
  • Tune in to @CVecchioFX 's #webinar at 7:30 AM ET/11:30 AM GMT for insight on major event risk in the week ahead. Register here: https://t.co/X8TIhpKxtF https://t.co/iOooFjHqZM
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.39% Oil - US Crude: 0.24% Gold: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3Xcd23YqRL
Gold Prices Approach April Low, Hold at Symmetrical Triangle Support

Gold Prices Approach April Low, Hold at Symmetrical Triangle Support

2019-04-15 21:00:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Talking Points:

- Gold prices fell at the start of the week, continuing from weakness seen on Thursday and Friday.

- A quiet economic calendar and news wire has investors quietly optimistic ahead of the shortened Easter week.

- Recent changes in trader positioning suggest that, if a triangle breakout were to occur soon, it would likely be to the downside.

Looking for longer-term forecasts on Gold and Silver prices? Check out the DailyFX Trading Guides.

When we last checked in on Gold prices a week ago, there was evidence (a weak US Dollar topping out) to suggest that more gains might be ahead for bullion. And while Gold prices initially rallied thereafter, the key developments that undercut the US Dollar’s appeal as a safe haven — dissipating concerns over the US-China trade war and Brexit – also served to undermine Gold.

In the past few days, the technical progress within the symmetrical triangle that has encapsulated price action since the start of 2019 has since been reversed. Gold prices have fallen back from near symmetrical triangle resistance and have rapidly approached symmetrical triangle support in just the span of three days.

Gold Technical Forecast: Daily Price Chart (April 2018 to April 2019) (Chart 1)

gold price forecast, gold price, gold chart, gold price chart, gold price technical forecast

The move back towards symmetrical triangle support and the April low mean little right now as Gold prices remain within their consolidation. To this end, traders shouldn’t be surprised that technical indicators are still relatively neutral.

However, there is evidence that momentum has begun to shift to the downside: price is below the daily 8-, 13-, and 21-EMA envelope; and both daily MACD and Slow Stochastics have started to turn lower below their respective median/neutral lines.

A move below the April low of 1280.80 would be a significant development in the days ahead and suggest that Gold prices may see a deeper setback towards the rising trendline from the August, September, and November 2018 lows near 1260 by the end of the month.

IG Client Sentiment Index: Spot Gold Price Forecast (April 15, 2019) (Chart 2)

igcs, ig client sentiment index, igcs gold, gold price forecast, gold chart, gold price, gold price chart

Spot Gold: Retail trader data shows 76.9% of traders are net-long with the ratio of traders long to short at 3.33 to 1. The number of traders net-long is 4.3% higher than yesterday and 9.0% higher from last week, while the number of traders net-short is 0.4% higher than yesterday and 4.5% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Spot Gold-bearish contrarian trading bias.

FX TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

--- Written by Christopher Vecchio, CFA, Senior Currency Strategist

To contact Christopher Vecchio, e-mail at cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

View our long-term forecasts with the DailyFX Trading Guides

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

DISCLOSURES