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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/6sqqRfTri2
  • The British Pound, Australian Dollar and US Dollar may all experienced heightened periods of volatility as geopolitical risks in North America, Asia and Europe rattle global financial markets. Get your $GBPUSD market update from @ZabelinDimitri here:https://t.co/0EFToM5Y8I https://t.co/5gsZQfX6aG
  • The New Zealand Dollar may continue to outperform the haven-associated US Dollar as price breaks above key long-term resistance. Get your $NZDUSD market update from @DanielGMoss here:https://t.co/D1DxtDkJXd https://t.co/DwkK9F9FCJ
  • #Gold prices declined following bearish technical cues, but a key zone of support was reinforced over the past 48 hours. #XAUUSD volatility risk is elevated ahead of the #USElection - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/30/Gold-Technical-Forecast-Election-Raises-Volatility-Risk-But-Support-Holds.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/5hgGEojvIE
  • What is the US Dollar outlook based on retail positioning ahead of the November 3rd presidential election? EUR/USD may fall as AUD/USD rises. Which way could USD/CAD capitulate? Find out from @ddubrovskyFX here:https://t.co/BVoIcR9anM https://t.co/Frmn9y6yKJ
  • US #COVID19 cases hit a record for a second consecutive day -BBG
  • The Indian Rupee may weaken following a breakout higher in USD/INR. Despite rising global stock market volatility, the Nifty 50 has been holding its ground. Could it capitulate lower? Find out from @ddubrovskyFX here:https://t.co/BNJ5uTKz1A https://t.co/VkvmiwWAtz
  • The US Dollar gained, pushing USD/SGD to break higher. However, USD/IDR may be looking at losses ahead. USD/MYR struggled to breach the March trendline. USD/PHP could rise.Get your market update from @ddubrovskyFX here:https://t.co/6W76mWMRrJ https://t.co/ukJG4eqDK0
  • The #DowJones and #SP500 have as of today averaged: -2.16% & 1.43% 3-months and 1-year before #Election2020 respectively What could this mean for the incumbent president/Trump next week? 👇 https://t.co/e4EyLTzRXl
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.14% 🇨🇦CAD: 0.04% 🇦🇺AUD: 0.01% 🇨🇭CHF: -0.18% 🇳🇿NZD: -0.22% 🇪🇺EUR: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XuMcr136y1
Gold Prices Continue to Shine on Dollar Decline- Resistance Ahead

Gold Prices Continue to Shine on Dollar Decline- Resistance Ahead

2017-07-29 00:16:00
Michael Boutros, Strategist
Share:
Gold Prices Continue to Shine on Dollar Decline- Resistance Ahead

Fundamental Forecast for Gold: Bullish

Gold prices rallied for the third consecutive week with the precious metal rallying 1.9% to trade at 1268 ahead of the New York close on Friday. The advance comes alongside continued weakness in the greenback with the DXY trading at the yearly lows. Although our broader outlook on bullion remains unchanged, prices are at risk for a near-term correction as we head into the August open.

U.S. 2Q GDP figures released on Friday showed the economy grew at an annualized pace of 2.6% q/q, slightly missing consensus, with the Core Personal Consumption Expenditure (PCE) topping expectations with a print of 0.9% q/q. The data did little to shift expectations for a December interest rate hike with markets still pricing a roughly 50/50 chance the Fed will hike again this year. News that North Korea has conducted yet another missile test spurred a late-week push higher in gold prices which stretched into near-term resistance just ahead of the European close.

Looking ahead to next week, markets will be closely eyeing central bank interest rate decisions from the Reserve Bank of Australia (RBA) & the Bank of England (BOE) with the highly anticipated U.S. Non-Farm Payroll report slated for Friday. While the broader outlook for bullion remains constructive, prices are eyeing near-term resistance heading into the close of the month and could limit the topside near-term.

Gold Prices Continue to Shine on Dollar Decline- Resistance Ahead
  • A summary of IG Client Sentimentshows traders are net-long Gold - the ratio stands at +2.78 (73.5% of traders are long)- bearishreading
  • Long positions are 1.5% lower than yesterday and 19.8% lower from last week
  • Short positions are 1.7% higher than yesterday and 20.6% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. That said, retail is less net-long than yesterday and compared with last week and the recent changes in sentiment warn that the current price trend may soon reverse higher despite the fact traders remain net-long.

Learn how to use Gold sentiment in your trading.Get more information on Sentiment here Free!

Gold Daily

Gold Prices Continue to Shine on Dollar Decline- Resistance Ahead

Gold prices broke above confluence resistance this week at 1259/61, putting the , “broader up-trend back in focus targeting a sliding parallel extending off the January highs, currently around 1280s.” Caution is warranted heading into the close of the month with prices eyeing near-term resistance just higher into the open of August trade. Broader bullish invalidation is now raised to 1241.

Join Michael for his bi-weekly Live Webinar on the Foundations of Technical Analysis- Register for Free Here!

Gold 240min

Gold Prices Continue to Shine on Dollar Decline- Resistance AheadGold Prices Continue to Shine on Dollar Decline- Resistance Ahead

Last week we noted a near-term constructive outlook, “while above 1230. A breach higher targets subsequent resistance objectives at 1270 and 1281.” Gold prices rebounded off a sliding parallel early in the week with the rally taking out the 1270 target on Friday. Note that near-term channel resistance is just higher and a rally into this region could see some profit-taking before continuing higher. Interim support rests at 1254 backed by the weekly low / lower parallel at 1243. Bottom line: could get an interruption next week but the trade remains constructive while within this formation.

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

Follow Michaelon 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