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
GBP/USD
Mixed
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
Real Time News
  • This 👇 https://t.co/UH4A7C2HOO
  • $USDJPY has spanned its full, tight range. The has slightly broadened its smallest 30-day trading range (as a ratio of spot) on record. Serious breakout candidate should a firm risk or Fed rate speculation wind come through https://t.co/XyajC1dAee
  • Seems this once-Hawkish view from Cleveland Fed President Loretta Mester is becoming the consensus for the FOMC https://t.co/uHAmcRFNlG
  • - Supports November taper - Still some distance from maximum employment goal needed for raising rates
  • Fed's Mester - Economy has met substantial further progress bar for taper - On inflation bar for raising rates has largely been met - Expect conditions for first rate hike to be met by end of next year
  • Heads Up:🇬🇧 BoE Tenreyro Speech due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-24
  • 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/HFl8E8exht
  • Credit Suisse dumped Evergrande exposure on risk fears - FT
  • RT @onlyyoontv: #China central bank declares #virtualcurrency-related business activities as illegal. No legal tender/crypto exchange; exch…
  • 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/2wzX4dacYJ
Gold Dives to Fresh Yearly Lows on Fed, Strong USD- 1100 in View

Gold Dives to Fresh Yearly Lows on Fed, Strong USD- 1100 in View

Michael Boutros, Strategist
Gold Dives to Fresh Yearly Lows on Fed, Strong USD- 1100 in View

Fundamental Forecast for Gold: Bearish

Gold prices are sharply lower for a fourth consecutive week with the precious metal off by more than 2.6% to trade at $1331 ahead of the New York close on Friday. The losses come amid continued strength in the greenback with the Dow Jones FXCM U.S. Dollar Index also marking a fourth weekly advance into fresh monthly highs. The recent price action suggests that the resilience in the USD may continue to drive market volatility as the Fed prepares households and business for higher borrowing-costs.

The semi-annual Humphrey-Hawkins Testimony before the House Financial Services Committee & the Senate Banking Committee further supports calls for a 2015 rate hike with Fed Chair Janet Yellen maintaining an upbeat outlook for the economy. Although Yellen did cite concerns over subdued inflation, the lag has largely been attributed to “transitory” factors with the committee anticipating stronger price growth in the second half of the year. With the Fed on track to remove the zero-interest rate policy (ZIRP) later this year, the bullish sentiment surrounding the greenback may continue to dampen the appeal of bullion and raises the risk for fresh 2015 lows.

Despite the limited U.S. event risk scheduled for the week ahead, gold is unlikely to find a meaningful bid following the failure to hold above the March low (1142), and the previous metal may continue to search for support in the days ahead amid the broader decline in global commodity prices.

From a technical standpoint, gold has broken below key support and the technical damage done leaves prices vulnerable while below 1150. Look for interim support at 1130 early next week where the 2014 swing low converges on the lower median-line parallel extending off the June low. A rebound off this level may be on the cards, but the broader picture remains weighted to the short-side with subsequent support objectives eyed at the 1.618% extension off the 2014 highs at 1100 backed by 1044/54. A breach above this week’s high at 1164 would be needed to shift the focus back to the long-side of gold.

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

DISCLOSURES