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
  • ECB's Muller - Given the currently very favourable financing conditions and the solid recovery, I am not sure if increasing the volume of APP purchases in the Spring is the best way to avoid a cliff effect
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM73cHA https://t.co/qwLAWMpCGn
  • 🇺🇸 MBA Mortgage Applications (17/SEP) Actual: 4.9% Previous: 0.3% https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:🇺🇸 MBA Mortgage Applications (17/SEP) due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-22
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrLeetw https://t.co/fs0ldanq41
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrX2BzZ https://t.co/Wfr6fQ9PTr
  • Of note, worth being cautious on the authenticity of this report given the source https://t.co/i9jcU0OQF4
  • Sources close to the Chinese Government have told Asia Markets a deal that will see China Evergrande (3333 HK) restructured into three seperate entities is currently being finalised by the Chinese Communist Party and could be announced within days.
  • Shadow MPC as hawkish as ever - They have been calling for the BoE to end QE early since June - Often a big difference in what people think a central bank should do and will do https://t.co/RAakSI8gI6
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqi8ZEe https://t.co/XfrcQXJu0Z
Gold Holds Support as NFPs Disappoint- $1349 Remains Key Resistance

Gold Holds Support as NFPs Disappoint- $1349 Remains Key Resistance

Michael Boutros, Strategist
Gold_Holds_Support_as_NFPs_Disappoint_1349_Remains_Key_Resistance_body_Picture_1.png, Gold Holds Support as NFPs Disappoint- $1349 Remains Key Resistance

Gold Holds Support as NFPs Disappoint- $1349 Remains Key Resistance

Fundamental Forecast for Gold: Neutral

Gold prices were softer at the close of trade this week with the yellow metal sliding 1.5% to close at $1312 in New York on Friday. An event risk packed week saw bullion prices largely range bound as we headed into the highly anticipated non-farm payrolls report on Friday. But with the data disappointing consensus estimates, near-term the gold trade may remain supported as expectations for a September taper from the Fed are challenged.

The FOMC rate decision on Thursday offered little clarity with regards to the exit strategy, with the central bank sounding rather dovish this time around as they highlighted the risk for disinflation. The committee also stressed that rates are likely to remain low for some time after tapering has been completed with the statement noting that the central bank ‘reaffirmed’ its intention to keep its accommodative stance- a contrast from the ‘expects’ language used in previous statements. That being said, the broader impact on the greenback is likely to remain limited with near-term weakness to offer favorable longs in the USDOLLAR.

Friday’s NFP print proved beneficial for the yellow metal after the report disappointed with a print of just 162K, missing estimates calling for a read of 185K. Gold prices were probing below near-term support on Friday ahead of the read with the print fueling a rally back above the $1300 level as the U.S. Dollar came under pressure. Although the data missed, the headline unemployment rate did see and unexpected drop from 7.6% to 7.4%, topping estimates calling for a read of 7.5%, despite a slight drop in the civilian labor force.

With the bulk of key US economic data now out of the way, the docket will be rather light next week and traders will be closely eyeing remarks from FOMC members in the wake of this week’s NFP print. With Chicago Fed President Charles Evans – a voting member on the FOMC – scheduled to speak next week, comments from the central bank dove may further dampen the scope of seeing the Fed taper at the September 17-18 meeting and the committee may continue to delay its exit strategy in an effort to encourage a stronger recovery.

From a technical standpoint, gold’s dip below the interim support range at $1295- $1307 will constitute a false break if prices hold above the level on a daily close basis. This puts the near-term focus higher early next week but does not invalidate the broader downtrend. It’s also important to note that the daily RSI signature has now rebounded off the 50-threshold and the risk for a push higher in the near-term remains so long as prices stay above $1307. The key interim resistance range noted last week remains in play at $1334-$1349 with a breach above this mark risking a run on $1370. Only a breach and daily close above the 1393/97 pivot range would invalidate the longer-term trend while a break and close below support eyeing subsequent support targets at $1262/68, $1243 and $1215. Bottom line: topside in the near-term remains a risk with rallies into our key thresholds offering favorable short entries. -MB

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

DISCLOSURES