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
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
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Following the BoE's decision to taper asset purchases, GBP/USD declined and found support around 1.3860 before pushing higher towards 1.39 $GBPUSD https://t.co/MV5q6gSAJc
  • Gold Price Tops $1,800 with Conviction - More Gains Ahead? -via @DailyFX Link to Full Analysis: https://www.dailyfx.com/forex/market_alert/2021/05/06/gold-price-tops-1800-with-conviction-more-gains-ahead.html $GLD $XAUUSD $GC_F https://t.co/W4YrNT0b1b
  • #Bitcoin in retreat following comments from SEC Chair Gary Gensler $BTCUSD #BTC https://t.co/YRsgI4QJI6
  • The USD/CAD breakdown is approaching initial support hurdles just lower and we’re looking for possible inflection early in the month. Get your $USDCAD market update from @MBForex here:https://t.co/UMm5aM60gf https://t.co/3CyZHyitSW
  • Canadian #Dollar Forecast: $USDCAD Plunge Marks Fifth Week– #NFP on Tap - https://t.co/P0LWHcSHwt https://t.co/abeYvgXgtl
  • SEC's Gensler: Bitcoin trading on major exchanges is not protected $BTCUSD #Bitcoin
  • Fed's Bostic: - The Fed isn't ready to formally debate asset purchase tapering yet - 1 million job gains in April wouldn't surprise me
  • Fed's Bostic: - Wage data is contingent on which workers return - It's difficult to be optimistic regarding inflation forecasts - It isn't possible to tell if the Fed can make any strides against its targets this year
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 3.25% Gold: 1.57% Oil - US Crude: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Wqhu4EwMTr
  • President Biden: - Corporate America will need to contribute its fair share - China is "eating our lunch" economically
Gold Eyes 1240 as Fed Takes a Dovish Shift

Gold Eyes 1240 as Fed Takes a Dovish Shift

Michael Boutros, Strategist
Gold Eyes 1240 as Fed Takes a Dovish Shift

Fundamental Forecast for Gold:Neutral

Gold prices are markedly higher this week with the precious metal rallying more than 2.5% to trade at $1221 ahead of the New York close on Friday. The advance marks the largest weekly rally since mid-June and comes amid a surge in volatility with back to back triple-digit swings in the Dow and steep losses in European equities. As fears of a global slowdown begin to take root, recent comments from the Fed have started to push out interest rate expectations with gold likely a beneficiary in the near-term.

The release of the minutes from the latest FOMC policy decision on Wednesday cited concerns among Fed officials with regards to the global slowdown while noting that the stronger dollar may dampen inflation and hamper exports. The dovish tone fueled demand for gold as markets rallied on expectations that the central bank may need to delay the normalization process. Equity gains were pared the following day however with the SP 500 posting a 2% decline as gold stretched into fresh monthly highs.

Looking ahead to next week, the attention shifts back to the US data stream with retail sales, industrial production, the University of Michigan surveys, housing numbers and the release of the Fed’s Beige Book on tap. With the recent downturn in equities and continued concerns regarding the recent USD rally, weaker data could further fuel strength in gold in the near-term. With that said, we would need to see a strong batch to cap this recent advance with the longer-term outlook remaining weighted to the downside. Look for possible strength in the coming weeks to likely offer more favorable short entries.

From a technical standpoint, gold continues to trade within the confines of a descending Andrew’s pitchfork formation with the monthly low coming in right at the rebound off pitchfork support. Prices are now nearly 4.5% off the lows and we’ll look for a breach above $1222/24 (on a close basis) to validate a break of the monthly opening range. Such a scenario targets resistance objectives at the June close at $1243- this level happens to coincide with the pitchfork bisector line late next week and may be relevant as the economic calendar picks back up. Interim support stands rests at $1206 with a move below this threshold shifting our focus back to the short side of the trade targeting pitchfork support and the 2013 lows at $1178/80. -MB

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

DISCLOSURES