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
Mixed
Oil - US Crude
Bearish
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
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • PBoC sets Yuan reference rate at 6.6725 against the US Dollar - BBG
  • #Silver retracing its losses earlier in the session as price carves out a Bear Flag pattern With resistance at $25 holding firm, further losses appear in the offing A daily close below the 21-DMA (24.20) may open the door for a retest of 61.8% Fib support (21.74) $SLVR $SLV https://t.co/rCl3Ms3FB3
  • The Nasdaq 100 index looks set to pull back amid bearish momentum in the near term. The 50-Day Simple Moving Average (SMA) line may serve as an immediate support. Get your #equities update from @margaretyjy here: https://t.co/5Axsg6gAdd https://t.co/rToHnPLSeS
  • $GBPUSD the outlier early in the session, up marginally as UK-EU Brexit negotiators extend talks until October 28 https://t.co/ey92YW4RJw
  • #CrudeOil down 1.95% on the back of tightening #COVID19 restrictions in several European nations $EURUSD nudging marginally lower https://t.co/PUWTfKl08f https://t.co/XuyQOzV6sj
  • Market Snapshot Broad risk-off tilt to kick-off APAC trade #Gold and #CrudeOil prices plunging lower alongside the risk-sensitive $AUDUSD Haven-linked $JPY and $USD moving higher against their major counterparts
  • Wall Street Futures Update: Dow Jones (-0.504%) S&P 500 (-0.536%) Nasdaq 100 (-0.484%) [delayed] -BBG
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/zSCf8azESa
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/ZJOEtpGUIq https://t.co/tJWOXZCoBw
Gold Posts Largest Loss in 4 Weeks as Bernanke Quiets QE Speculation

Gold Posts Largest Loss in 4 Weeks as Bernanke Quiets QE Speculation

2012-06-08 13:13:00
Michael Boutros, Strategist
Share:
Gold_Posts_Largest_Loss_in_4_Weeks_as_Bernanke_Quiets_QE_Speculation_body_Picture_21.png, Gold Posts Largest Loss in 4 Weeks as Bernanke Quiets QE Speculation

Fundamental Forecast for Gold: Neutral

Gold is markedly weaker at the close of trade this week with the previous metal off by nearly1.8% to close at $1594 in New York, marking its worst performance since the week ending May 11th when gold tumbled 3.71%. Prices saw the largest single day decline since April 4th on Thursday after Fed Chairman Ben Bernanke’s testimony before congress where he offered now clear signal for further easing from the Fed. While the chairman did not specify, he did note that the central banks still had options for further easing should conditions warrant. The balanced tone saw speculation for further another round of quantitative easing subside with gold coming under increased pressure as demand for gold as a hedge against inflation dwindled with the yellow metal falling nearly 1.9% on the session.

Gold prices have continued to react sharply to QE speculation with Eurozone concerns unable to fuel the metal with any type of substantial rally. Hesitant gains in gold, despite record low bond yields, highlights the metals break with broader risk trends with prices taking cues off fluctuations in the greenback as investors weigh prospects for further dollar diluting policies from the Federal Reserve. Looking into the week ahead, market participants will be lending a keen ear to remarks made by Fed voting members Dennis Lockhart, John Williams, and Sandra Pianalto who are all scheduled to speak on Monday. Dollar price action will also be crucial with the Dow Jones FXCM Dollar Index (USDOLLAR) eyeing key Fibonacci resistance at the 10,255. Look for prices to remain supported should the greenback break back below the October highs at 10,134, while a breach above 10,255 would likely risk further losses for the precious metal.

From a technical standpoint, gold remains within the confines of a newly adjusted descending channel formation off the February highs with the precious metal reversing sharply after testing key resistance at the confluence of the 38.2% Fibonacci extension taken from the September and February highs and channel resistance at $1640. This level now serves as out topside limit which if breached dispels further downside pressure in the near-term for bullion with such a scenario eyeing topside targets at the 200-day moving average at $1680 backed by the 23.6% extension just shy of $1700. Interim daily support now rests at the 50% extension at $1590 backed by the 61.8% extension at $1545. A break below the December lows at $1525 risks substantial losses with subsequent floors seen at the 78.6% extension at $1480 and $1445. We remain neutral on gold at these levels pending either a topside breach above channel resistance or a break below the September lows with price action likely to remain range bound in the interim. -MB

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

DISCLOSURES