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
  • USD approaching YTD high (93.73) Factors supporting USD - Yields picking up - Risk appetite weaker - Corporate month end, typically USD positive https://t.co/MOjs8VqRav
  • China State Grid says will strictly control power consumption by high-energy consuming polluting sectors - Will closely monitor supply of thermal coal, hydro and wind power
  • Citi lowers China 2022 GDP forecast 4.9% from 5.5%, citing expected spillover from managed Evergrande restructuring
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/8p6STxmVC6
  • Spooz sub 50-DMA again. There’s been some selling overnight during the European sessions yesterday and today. Sure hope this doesn’t shape up into a H&S topping pattern, but has anyone else noticed lower highs and lower lows forming? 👀 $SPX $ES #SP500 https://t.co/Bf3Icn2T2H https://t.co/vf8jgtVstk
  • PBoC Governor - PBoC has the conditions in place to maintain a normal and rising yield curve - Sees no need to purchase assets now
  • Not today I’m afraid. I’m on holiday in Ventnor in the lovely Isle of Wight https://t.co/iIm6hBksLs
  • ECB's Villeroy - Inflation forecast justifies keeping loose ECB policy
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/T2Lg516oCq
  • Join @MartinSEssex at 5:30 EST/9:30 GMT for a webinar on trading sentiment. Register here: https://t.co/CX9djlHnWK https://t.co/wyMaa9BPYk
Gold Holds Key Support- NFPs to Shape August Opening Range

Gold Holds Key Support- NFPs to Shape August Opening Range

Michael Boutros, Strategist
Gold Holds Key Support- NFPs to Shape August Opening Range

Fundamental Forecast for Gold: Neutral

Gold prices are lower for a sixth consecutive week with the precious metal down 0.36% to trade at 1095 ahead of the New York close on Friday. Despite the losses, gold has continued to respect key support tested last week into 1072 with the broader bearish outlook at risk near-term while above this threshold.

Looking ahead to next week, the US Non-Farm Payrolls (NFP) report will be central focus in light of the Fed’s attempt to buy more time. Despite the optimistic outlook held by the central bank, the ongoing slack in labor force participation, subdued inflation and a weakening outlook for global growth may continue to derail plans for higher borrowing-costs. Even though the central bank continued to endorse a 2015 rate-hike, the unanimous vote to retain the current policy suggest that the bar remains high for a September liftoff, and the ongoing mixed batch of data coming out of the U.S. economy may further dampen interest rate expectations as Chair Janet Yellen remains in no rush to remove the zero-interest rate policy (ZIRP).

With only so much time left before the next Fed meeting on September 17, the upcoming data prints may play an even greater role in driving market volatility across the financial markets, and signs undermining the Fed’s outlook for a stronger recovery may dampen the appeal of the greenback and limit the downside risk for gold. Although the broader outlook remains tilted to the downside amid the bullish sentiment still surrounding the reserve currency, weak U.S. data prints may continue to put a floor under bullion with the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDOLLAR) showing a meaningful turn at resistance into the close of July trade.

From a technical standpoint gold has continued to respect a critical support confluence noted last week at ~1070/73. The trade remains vulnerable for a rebound while above this region heading into August open initial resistance seen at the 2014 lows at 1130. The broader outlook for gold remains bearish while sub 1145/51 with a break of the lows targeting the 2010 low at 1044 backed by a key longer-term Fibonacci confluence lower down at 975/80. We’ll keep an eye on the August opening range for further guidance on our near-term directional bias with a breach of the recent consolidation range between below 1103 shifting the immediate focus higher next week.

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

DISCLOSURES