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
More View more
Real Time News
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/DSp7f3YuAx
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/HNqHcbL6vk
Forex Analysis: Gold Struggles Ahead of FOMC Meeting- Policy Outlook To Drive Prices

Forex Analysis: Gold Struggles Ahead of FOMC Meeting- Policy Outlook To Drive Prices

Michael Boutros, Strategist
Gold_Struggles_Ahead_of_FOMC_Meeting-_Policy_Outlook_To_Drive_Prices_body_Picture_1.png, Forex Analysis: Gold Struggles Ahead of FOMC Meeting- Policy Outlook To Drive Prices

Fundamental Forecast for Gold: Neutral

Gold was off by 0.64% this week with the precious metal closing at just shy of $1704 in New York on Friday. The move comes amid a volatile week filled with event risk as central bank decisions from Australia, New Zealand, Canada, the UK and the Eurozone kept traders on their toes. An interest cut from of the RBA, a downgrade Eurozone growth projections from of the ECB, a rather misleading and However, with gold posting its second weekly decline off the August highs, is the metal poised for further losses?

The November non-farm payroll report today crushed estimates with a print of 146K jobs and a 0.2% decline in unemployment bringing the rate to 7.7%. Although the headline figures look encouraging, a deeper look into the metrics revealed a downward revision of last month's 171K print to just 138K with discouraged workers leaving the work force accounting for a 350K contraction in the labor pool. While this is likely to have added artificial downward pressure on the unemployment rate, markets ran with the headlines after concerns over the impact of Hurricane Sandy had yielded rather low expectations for the print. Gold's immediate response saw prices plummet into the $1685 threshold before rebounding sharply back above $1700 and with continued sluggish growth in the labor market, expectations for further Fed easing could limit losses in the interim.

As we head into the close of 2012, all eyes now turn to the FOMC policy meeting on Wednesday as Chairman Bernanke and company release updated forecasts on interest rates, growth and inflation. With the end of operation twist approaching at year's end, there has been wide speculation that the central bank will look to implement additional non-standard measures in an effort to support the fragile recovery. As such, it's likely gold will hold weekly support as we head into the rate decision and although our bias is neutral we maintain a constructive approach above $1693 on a daily close basis. Should Bernanke cast an increasingly dovish tone on monetary policy, look for gold to push off this mark with a breach above the monthly high clearing the way for further advances.

Last week we noted that "while we cannot rule out another test of the 1693-1705 region, the broader prospects for gold remain constructive." Indeed the region did see a test this week with four consecutive attempts and failures to close below this key threshold. The rejection at this mark may offer some near-term support but we cannot treat gold as stable unless $1720 is overtaken with such a scenario once again eyeing the key Fibonacci congestions at $1735-$1738. A break below the November low-day close at $1685 exposes targets at $1673 (November low) and the 200-day moving average, currently at $1661. -MB

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

DISCLOSURES