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
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.63%, while traders in France 40 are at opposite extremes with 82.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FD0WVipVhk
  • RT @RiskReversal: Check out @GuyAdami and me on this week's @macrosetup brought to you by @IG_US with @DailyFX's @CVecchioFX. We discuss th…
  • Alibaba (9988 HK) plunged 3% after reporting a 5% YoY decline in net profit for Q2.
  • Alibaba (9988 HK) plunged 3% after it reported a 5% decline of YoY net profit for Q2.
  • 🇨🇳 Caixin Composite PMI (JUL) Actual: 53.1 Previous: 50.6 https://www.dailyfx.com/economic-calendar#2021-08-04
  • 🇨🇳 Caixin Services PMI (JUL) Actual: 54.9 Previous: 50.3 https://www.dailyfx.com/economic-calendar#2021-08-04
  • 8 out of 9 Dow Jones sectors ended higher, with 83.3% of the index’s constituents closing in the green. Materials (+1.65%), healthcare (+1.44%) and industrials (+1.26%) were among the best performers, whereas communication services (-1.12%) trailed behind. https://t.co/FuutHW0ITB
  • RT @Yeap_IG: #IGMorningthoughts: - Broad-based strength in US overnight, #VIX fall but higher lows still present - US factory orders contin…
  • (Sentiment Weekly) Japanese Yen Analysis: USD/JPY, AUD/JPY at Risk as Retail Traders Boost Long Bets *and recording of today's webinar in link below #Yen $USDJPY $AUDJPY https://www.dailyfx.com/forex/technical/article/special_report/2021/08/04/Japanese-Yen-Analysis-USDJPY-AUDJPY-at-Risk-as-Retail-Traders-Boost-Long-Bets.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/xuKdaFQX4g
  • 🇦🇺 Retail Sales MoM Final (JUN) Actual: -1.8% Expected: -1.8% Previous: 0.4% https://www.dailyfx.com/economic-calendar#2021-08-04
Gold Traders Sidelined Awaiting Next Bullish Breakout

Gold Traders Sidelined Awaiting Next Bullish Breakout

Rich Dvorak, Analyst
Gold Spot Price Chart XAU/USD Friday January 11, 2019

Gold Fundamental Forecast: Bullish

  • Risk-on sentiment offset bids for Gold from Fed dovishness last week
  • Lingering global risks could easily flare up at any moment and reignite financial market volatility sending investors flocking back to Gold
  • Further gains in stocks or a rebound in the USD pose as threats to the downside

Price action in Gold this week was relatively quiet as the precious metal finished a meagre 10bps lower. Appetite for risk caught bid as positive US-China trade war progress headlines coupled with a dovish Fed pushed the S&P500 and Dow Jones nearly 2.5 percent higher over the last 5 days of trading.

Recent turmoil in the equity and credit markets has sent Gold on a steady ascent from its August 2018 low causing the safe haven to climb 10 percent since then. Although Gold’s upward momentum has waned since the start of the year, the bullish trend remains intact

GOLD PRICE CHART: 120-MINUTE TIMEFRAME (DECEMBER 03, 2018 TO JANUARY 11, 2019) (CHART 1)

Gold Spot Price Chart XAU/USD December 03, 2018 to January 11, 2019

Investor demand for Gold has increased as of late on the back of heating up inflation, lower interest rate projections and mounting recession fears. The commodity is now flirting with resistance nearing the $1,300 price range, its highest level since June of last year.

Looking ahead, lingering risks ranging global growth, Brexit and the US government shutdown just to name a few could easily cause another flare up in financial market volatility quickly sending investors flocking into Gold.

Additionally, developments that boost the Chinese Renminbi against the US Dollar may support further advances in Gold given the tight correlation between XAU/USD and CNY/USD.

GOLD PRICE CHART: 30-MINUTE TIMEFRAME (JANUARY 02, 2019 TO JANUARY 11, 2019) (CHART 2)

Gold Spot Price Chart XAU/USD January 02, 2019 to January 11, 2019

Spot Gold has pulled back slightly as previously mentioned and is starting to consolidate into a wedge, but the price now rests at its uptrend support line in addition to its 0.5 Fibonacci retracement level. Also, with the Relative Strength Index starting to send an oversold signal showing short term weakness, the indicator could be viewed as a strategic entry point for Gold bulls.

---

Written by Rich Dvorak, Junior Analyst for DailyFX

Follow on Twitter @RichDvorakFX

Check out our Education Center for more information on Currency Forecasts and Trading Guides.

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

DISCLOSURES