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
  • Bitcoin (BTCUSD) putting in a decent shift and back above $40k - ignoring the 'will they/won't they?' Amazon chatter. #bitcoin #btc @DailyFXTeam Prices via @IGcom https://t.co/jXB2fP11kG
  • Further your forex knowledge and gain informed analyses from industry leaders with our free guides, available today. Download the Q3 guide:https://t.co/7G7pWntiyY https://t.co/IwfNn9HRhM
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.53% Oil - US Crude: 0.29% Gold: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ClrxkIhs94
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.25% 🇨🇭CHF: 0.03% 🇪🇺EUR: -0.03% 🇯🇵JPY: -0.13% 🇳🇿NZD: -0.21% 🇦🇺AUD: -0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OCHk2MUjOO
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 0.82% FTSE 100: 0.28% Germany 30: 0.19% US 500: 0.18% Wall Street: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Rbdrdjj6kp
  • 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/rz7fqhRoMG https://t.co/NPHJ7riOrS
  • USD/JPY IG Client Sentiment: Our data shows traders are now net-long USD/JPY for the first time since Jul 20, 2021 09:00 GMT when USD/JPY traded near 109.86. A contrarian view of crowd sentiment points to USD/JPY weakness. https://www.dailyfx.com/sentiment https://t.co/siqj2GrhF5
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/f5NSF0ih1d
  • Gold Prices Climb Ahead of FOMC as Traders Anticipate Status Quo, USD Falls https://www.dailyfx.com/forex/market_alert/2021/07/28/Gold-Prices-Climb-Ahead-of-FOMC-as-Traders-Anticipate-Status-Quo-USD-Falls.html https://t.co/ymhbav9fHz
  • 🇮🇹 Business Confidence (JUL) Actual: 115.7 Expected: 115.4 Previous: 114.8 https://www.dailyfx.com/economic-calendar#2021-07-28
Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

Michael Boutros, Strategist
Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

Fundamental Forecast for Gold: Neutral

Gold prices marched higher for a fourth consecutive week with the precious metal up 0.86% to trade at 1207 ahead of the New York close on Friday. Sustained weakness in the greenback continued to offer support for bullion which held near two-month highs as all the world shifted its attention to the inauguration of the 45th President of the United States. The technical & fundamental picture remains precarious near-term and although prices look due for a set-back, the broader outlook remains unchanged.

Heading into next week, traders will be closely eyeing the release of US 4Q GDP figures on Friday. Consensus estimates are calling for an annualized print of 2.2% q/q, down from 3.5% q/q. Keep in mind that interest rate expectations remain firmly rooted for the second half of the year with Fed Fund Futures citing a 74% chance for a hike at the June meeting. However, with the inauguration of a new president and a more ‘business friendly’ administration expected to take the reins, markets may take more cues near-term by the first few days of the Trump presidency. From a trading standpoint, while the broader focus remains constructive, the advance remains vulnerable heading into the last full week of January trade.

XAUUSD Speculative Sentiment Index

Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net long Gold- the ratio stands at +1.51, down from 1.66 last week. It’s important to note that “SSI has continued to narrow from the 2016-extreme of +5.02 and has been accompanied by a marked change in price behavior.”

Note that the ratio is now approaching more neutral levels and highlights the risk of a near-term pullback in price. It’s too early to tell if this will develop into a more significant turn, but for now, the risk is for a correction lower while below resistance. That said, I’ll be looking for a continued build in short exposure / a flip to next short to suggest that a broader, more significant low is in place.

Gold Daily

Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

Last week we noted that "Heading into next week, things get a bit dicey for gold. We can’t rule out a run on critical confluence resistance just higher at 1218, but we’ll generally be looking for an exhaustion pullback in prices with near-term support eyed at 1182.” The outlook / levels remain unchanged. I would be looking for a pullback next week to offer more favorable long entries with a break below interim support at 1200 targeting highlighted confluence slope support at 1182. A breach eyes longer-term resistance targets at 1238/41 & 1248.

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

Join Michael for Live Weekly Trading Webinars on Mondays on DailyFX at 13:30 GMT (8:30ET)

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

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

DISCLOSURES