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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here: https://t.co/SIpslvhX0J https://t.co/jVxcE1QUBs
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here: https://t.co/MTc4tUDD6c https://t.co/DOQ6tyzep9
  • 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/WQLZ1X7gIY
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level https://t.co/LkEyRxFhnq
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:https://t.co/vytr4OR1Jy https://t.co/ZcxEUWIm8O
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/x8uyOHLtgE
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/CaMR0Vqd1m
  • The US Dollar lost ground to most ASEAN currencies as Emerging Market assets climbed despite US economic woes. USD/INR is eyeing third-quarter Indian GDP at the end of the week. Get your market update from @ddubrovskyFX here:https://t.co/urDN2b5Nwd https://t.co/toSDbVZCSi
  • The global stock market can be categorized into specific groups or ‘stock market sectors’. Organizing the vast number of stocks in this way helps traders to view assets in a more manageable way. Get your stock market sectors basics here: https://t.co/5gbiHmY8yl https://t.co/mQ6ty8Yalv
Gold Price Forecast: XAU Slammed to Support on Covid Vaccine News

Gold Price Forecast: XAU Slammed to Support on Covid Vaccine News

2020-11-09 19:30:00
James Stanley, Strategist
Share:

Gold Price Forecast:

  • When good news goes wrong, at least for Gold bulls. Gold has put in a massive bearish move of -5% on positive news of a Covid vaccine.
  • Gold prices had broken out from the falling wedge formation late last week, giving the appearance that bullish continuation might be in the cards. That has reversed aggressively.
  • This covid news is still relatively new and the situation remains fluid: Be prepared for continued volatility in Gold and other macro markets.
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
Advertisement

The resounding driver across global markets today is one driven by hope: If you’re reading this you probably already know that Pfizer has announced some pretty positive results for their Covid vaccine. This entails apparently a +90% efficacy rate and a protection span of at least a month. But, perhaps the more exciting part of the announcement is the way that the vaccine works, as Pfizer’s drug relies on messenger RNA (mRNA) for inoculation. This is similar to other Covid drugs in the pipeline, such as the one produced by Moderna, and this provides for even more hope as a failure from Pfizer could be rectified by another candidate.

Interestingly – the US equity index that experienced the largest push to start the week is also the one that stripped Pfizer out of the index less than three months ago…

The Dow Jones Industrial Average had Pfizer as one of their 30 companies for a long time; but in August, moved to take Pfizer out of the index to account for re-balancing in Apple after their stock split. That seemed to matter little to equity traders this morning, however, as the Dow jumped by as much as 6% from the Friday close, well above the max gain of 4.48% for the S&P 500 and the 3% for the Nasdaq. Those moves have already moderated a little bit but one item that hasn’t yet backed down is Gold.

Gold prices came into the weekend after a fresh breakout in the latter portion of last week. And this very much synced with the big picture trajectory in Gold, in which months of digestion took on the form of a falling wedge, only to give way to another push of buying pressure. This led to all time-highs in August; but that’s when another round of digestion began – and that held all the way into last week.

Gold Forecast
Gold Forecast
Recommended by James Stanley
Download our Q4 Gold Forecast
Get My Guide

Also of interest and highlight just how supercharged this move has been: Notice on the below chart how the weekly bar is already showing as a bearish engulfing pattern. This, of course, isn’t yet confirmed because we have the rest of the week but the fact that this has already built-in on Monday is definitely an interesting point to consider for anyone analyzing Gold at the moment.

To learn more about bearish engulfing patterns, check out DailyFX Education

Gold Weekly Price Chart

Gold Weekly Price Chart

Chart prepared by James Stanley; Gold on Tradingview

At this point, Gold prices have slammed down to a fresh monthly low, and this has been in an aggressive fashion as the yellow metal has dropped by as much as $114 and more than 5%. Prices are posturing in a key zone, running from 1859-1871 on the chart, and this is the same area that came into play in both August, September and October to help set the lows.

The big question is whether the fourth time is a charm or a curse?

Traits of Successful Traders
Traits of Successful Traders
Recommended by James Stanley
Traits of Successful Traders
Get My Guide

Gold Daily Price Chart

Gold Daily Price Chart

Chart prepared by James Stanley; Gold on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES