Skip to content
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
Gold Price Tracks January Opening Range Going Into Fed Blackout Period

Gold Price Tracks January Opening Range Going Into Fed Blackout Period

David Song, Strategist
Please add a description for the image.

Gold Price Talking Points

The recent advance in the price of gold appears to have stalled ahead of the monthly high ($1832) as it snaps the series of higher highs and lows from earlier this week, and the precious metal may consolidate during the Federal Reserve’s blackout period as it trades within the opening range for January.

Fundamental Forecast for Gold Price: Neutral

The price of gold struggles to hold its ground after showing a kneejerk reaction to the dismal US Retail Sales report, and the precious metal may trade within the monthly opening range ahead of the next Fed interest rate decision on January 26 as central bank officials go off the wires.

It remains to be seen if the Federal Open Market Committee (FOMC) will react to the mixed data prints coming out of the economy as Chairman Jerome Powell strikes a hawkish tone in front of US lawmakers, and speculation for an imminent change in regime may produce headwinds for bullion as the central bank appears to be on track to implement higher interest rates over the coming months.

According to the CME FedWatch Tool, Fed fund futures are currently pricing a greater than 80% probability for a 25bp rate hike in March, and the FOMC may utilize the next rate decision to unveil a more detailed exit strategy as Governor Lael Brainard reveals that “we started to discuss shrinking our balance sheet” while testifying in front of the Senate Committee on Banking, Housing and Urban Affairs.

With that said, bullion may consolidate during the Fed’s blackout amid the failed attempt to test the monthly high ($1832), and the price of gold may track the January opening range over the coming days as it snaps the series of higher highs and lows from earlier this week.

Gold Forecast
Gold Forecast
Recommended by David Song
Download the DailyFX Forecast for Gold
Get My Guide

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong

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

DISCLOSURES