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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
Gold
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
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • $USDMXN: Can the Mexican Peso Rally Last Despite US Dollar Dominance? Full Analysis: https://www.dailyfx.com/forex/market_alert/2020/02/19/usd-mxn-price-usdmxn-forecast-can-mexican-peso-rally-last-amid-us-dollar-dominance.html - via @DailyFX #FX #Forex #Trading $USD $MXN https://t.co/6JjNa9aO11
  • Fed's Kashkari: - Gives best guess as to rates, sees possibility for a cut rather than hike - Sees no imminent fed policy change - Comfortable where rates are right now
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 2.33% Silver: 0.69% Gold: 0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ltI6Dfefc7
  • Fed's Kashkari: - Not expecting trade war to worsen or improve much in near term outlook
  • Fed's Kashkari: - Virus adds uncertainty to outlook - US will see impact of coronavirus if if situation worsens - Will review China's data with a 'somewhat' skeptical eye
  • $USDCAD is attempting to break monthly opening-range and leaves the risk lower for now while within this formation.. Get your USD/CAD technical analysis from @MBForex here: https://t.co/bV9RZ9iQHk https://t.co/93KYC60ae5
  • Fed's Kashkari: - Consecutive 2019 rate cuts work to bolster housing sector
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.21% 🇪🇺EUR: -0.04% 🇨🇭CHF: -0.12% 🇦🇺AUD: -0.24% 🇬🇧GBP: -0.55% 🇯🇵JPY: -1.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/RRaUMu1fF7
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: US 500: 0.59% Wall Street: 0.48% France 40: 0.02% Germany 30: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/QrCuqNulgK
  • $XAUUSD finds intraday support around 1600 psychological level.
Gold Prices Plummet 6% as Trump Win Fuels Risk

Gold Prices Plummet 6% as Trump Win Fuels Risk

2016-11-11 21:35:00
Michael Boutros, Technical Strategist
Share:
Please add a description for the image.

Fundamental Forecast for Gold:Neutral

Gold prices plummeted this week with the precious metal down more than 6.2% to trade at 1222 ahead of the New York close on Friday. The losses come on the back of a stunning victory by president-elect Donald Trump with all three major U.S. stock indices closing markedly higher as yields on 10-year Treasuries surged to levels not seen since January. While the broader economic impact of a Trump Presidency remains to be seen, in the near-term market reaction remains constructive with gold prices on the defensive into the close of the week. This ‘risk on’ environment will continue to weigh on the yellow metal as the improvement in market sentiment drives demand for higher yielding assets.

Looking ahead to next week traders will be lending a keen ear to a fresh batch of commentary from Fed Speakers as expectations for a December rate hike continue to take root. Fed Fund Futures have continued to climb post-election with markets now pricing an 84% chance the central bank will move on rates next month. With the stage now set for Janet Yellen & Co, traders will be eyeing key U.S. data prints next week with Advanced Retail Sales & the Consumer Price Index (CPI) on tap. All thing’s held constant (data in-line), look for gold to remain under pressure as rising asset prices & expectations for higher rates continue to curb demand for bullion holdings.

DailyFX SSI

A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net long Gold- the ratio stands at +3.51 (78% of traders are long)- weak bearish reading. Last week we noted, “The pullback in long exposure softens the strength of the bearish signal and suggests the recent advance may be at risk heading into next week.” Long positions are now 39.5% above levels seen last week while short positions are 52.8% lower over the same time period. The recent build in open interest (20.7% above its monthly average) on increased long positioning suggests that retail crowds are attempting to fade this downturn and keeps the risk for further near-term losses.

Gold Weekly

Gold Weekly Chart

A weekly chart shows gold prices posting an outside-reversal bar off a sliding paralle extending off the early highs – note that this trendline coverges on the mediaan line extending off the June 2013 low and charged a sharp reversal in price with the decline now eyeing confluence structural support into 1210.

Gold Daily

Gold Daily Chart

This week marks the largest weekly range since April 2013 and the largest decline since June 2013. Heading into next week, look for near-term support heading into 1205/10- a region defined by the 50% retracement of the December advance and the May low-day close. The short-bias is at risk heading into this zone – area of interest for near-term exhaustion / long-entries with interim resistance seen at 1249 backed by bearish invalidation at 1275. A break lower targets the key 61.8% retracement at 1171. Bottom line, looking for a move lower into support early next week where prices could mount a more meaningful counter-offensive.

---Written by Michael Boutros, Currency Strategist with DailyFX

Join Michael for Live Scalping Webinars on Mondays on DailyFXat 12:30 GMT (8:30ET)

Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or ClickHere to be added to his email distribution list

11-4-2016-gld.dochttps:/www.dailyfx.com/forex/technical/elliott_wave/gold/2016/11/10/eliottWaves_gold.html?ref-author=Boutros

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

DISCLOSURES

News & Analysis at your fingertips.