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
Bearish
Oil - US Crude
Mixed
Wall Street
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
Gold
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.57%, while traders in France 40 are at opposite extremes with 71.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/DpuFUPtd1u
  • Heads Up:🇮🇹 Retail Sales MoM (OCT) due at 09:00 GMT (15min) Previous: -0.8% https://www.dailyfx.com/economic-calendar#2020-12-04
  • Heads Up:🇨🇿 Unemployment Rate (NOV) due at 09:00 GMT (15min) Actual: 3.8% Expected: 3.8% Previous: 3.7% https://www.dailyfx.com/economic-calendar#2020-12-04
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.79% Silver: 0.72% Gold: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/YeN5uOchic
  • Brush up your knowledge on #tradewars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/i2X7EA6i10
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.12% 🇬🇧GBP: 0.09% 🇨🇦CAD: 0.05% 🇯🇵JPY: -0.10% 🇦🇺AUD: -0.12% 🇳🇿NZD: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/iCnrKCNJSS
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.45% US 500: 0.14% Wall Street: 0.08% France 40: -0.06% Germany 30: -0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/RYDTcaLllr
  • EU Stoxx 50 Index at Risk on Vaccine Hiccup, #ECB Tempering Expectations - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/12/04/EU-Stoxx-50-Index-at-Risk-on-Vaccine-Hiccup-ECB-Tempering-Expectations.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr #EUStoxx50 $FESX $EUSTX https://t.co/s6k95MXei5
  • Heads Up:🇨🇿 Unemployment Rate (NOV) due at 08:00 GMT (15min) Expected: 3.8% Previous: 3.7% https://www.dailyfx.com/economic-calendar#2020-12-04
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/II37qTqX0K
Gold Price to Resume Ascent as Fed Asset Purchases Balloon

Gold Price to Resume Ascent as Fed Asset Purchases Balloon

2020-03-23 18:54:00
Rich Dvorak, Analyst
Share:

GOLD PRICE, GOLD FORECAST & GOLD NEWS: FED QE PROGRAM TO BOOST BULLION

  • Gold price action looks primed to resume its near-vertical climb as liquidity is restored
  • Gold exploded over 3% in response to ‘extensive new measures’ from the Fed
  • Gold could rise with the FOMC able to purchase an unlimited amount US Treasuries

After the recent stock market rout pressured gold more than 10% lower, the precious metal might be set to resume its parabolic ascent. Gold is on pace for its biggest intraday gain since June 2016 as spot prices soar over 3.5% while virus-induced recession fears swell.

GOLD PRICE CHART: 5-MINUTE TIME FRAME (23 MARCH 2020 INTRADAY)

Gold Price Chart Fed QE Program Coronavirus

Gold price action started to skyrocket this morning after mind-boggling news from the Federal Reserve crossed the wires. The US central bank, or Fed, detailed extensivenew monetary policy tools in aims of countering the worrisome spike in recession risk largely attributed to economic fallout from the coronavirus pandemic.

Gold BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -7% 21% -2%
Weekly -13% 21% -7%
Learn how to use sentiment in your trading strategy
Get My Guide

Specifically, the Fed revealed unprecedented measures that allows the FOMC to purchase US Treasuries and agency mortgage-backed securities “in the amounts needed.” With the Federal Reserve announcing unlimited QE, the Fed balance sheet is likely set to explode, which reinforces the thesis that gold could soon near record highs.

GOLD PRICE CHART: DAILY TIME FRAME (AUGUST 2019 TO MARCH 2020)

Gold Price Chart XAUUSD Gold Forecast Federal Reserve Balance Sheet to Grow

Chart created by @RichDvorakFX with TradingView

Spot gold (XAU/USD) has rebounded by 7.5% since the March 16 swing low around the $1,460/oz price. In addition to technical support provided by the November and December 2019 lows, this level roughly aligns with the 200-day simple moving average as well.

Gold faces a series of technical barriers that may hinder a prolonged rally as the precious metal retraces its month-to-date trading range, however. The $1,555 price zone – underpinned by last year’s high – stands out as the first obstacle faced by spot gold. This technical level is also highlighted by the 38.2% Fibonacci retracement of the 15% drop between March 09 and March 16.

Gold Forecast
Gold Forecast
Recommended by Rich Dvorak
Check out our latest Gold Forecast for comprehensive outlook
Get My Guide

That said, amid extreme volatility and wild price swings, holding above this area could provide confirmation that the pullback in gold might be over, and perhaps XAU/USD will continue rebounding higher. Beyond the $1,555 level brings to focus the 50-day simple moving average and $1,585 mark. The 78.6% Fibonacci retracement and $1,645 price could also thwart a sustained move to the upside before gold bulls target year-to-date highs slightly above $1,700.

Read More: How to Trade Gold – Top Gold Trading Strategies & Tips

-- Written by Rich Dvorak, Junior Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES