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
Subscribe
Please try again
EUR/USD
Bearish
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
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/OCLzmXaDCu
  • Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/UZela9nSIm
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/7oqC3ykBbU
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/IgUIG55MbH
  • Supply constraints, rebounding global demand and rising inflation expectations may drive crude oil prices higher in the near term. Get your market update from @DanielGMoss here: https://t.co/ezPoAwcJt7 https://t.co/NMfk1cYSvE
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/OiRiBVeuzL
  • Crude Oil Prices Aiming Higher on OPEC Surprise, Inflation Expectations - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/03/06/Crude-Oil-Prices-Aiming-Higher-on-OPEC-Surprise-Inflation-Expectations.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CL #Crudeoil #OOTT #OPEC https://t.co/AKvXWX9DLQ
  • Given the size of the rally in the eleven months preceding the beginning of the current decline a broader sell-off looks warranted. Get your market update from @PaulRobinsonFX here: https://t.co/UxZiSulpwB https://t.co/raXvlzkGbV
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/lp0tmKS9WR
  • 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/3bOSIBeID9
Gold Prices Ride Trade-War, Low Yield Wave But Rally May Pause

Gold Prices Ride Trade-War, Low Yield Wave But Rally May Pause

David Cottle, Analyst
Gold

Fundamental Gold Forecast: Neutral

  • Gold is supported by trade tensions and crumbling bond yields
  • As investors rethink prospects for higher interest rates, it may do better still
  • Consolidation is probably needed first though

Join our analysts live for live coverage of all major economic data at the DailyFX Webinars.

Gold prices remain close to their 2019 peaks, buoyed up by a range of supportive factors which have added to the luster of all perceived haven assets.

Trade tensions remain very high of course, particularly between China and the US where signs of rapprochement are as elusive as ever. China is not the only economy in White House sights, and, while there seems to be some more trade geniality around between the US and Mexico, it is hard to be sure of anything until agreement is reached. It may be, but there’s no sign yet.

It seems all-too likely that trade news flow will continue to dominate short-term sentiment toward gold in the coming week.

It won’t be the only factor. The overall backdrop is becoming more friendly to non-yielding assets like precious metals as the yield on ‘risk free’ paper like Treasuries and German bunds heads lower. With German yields close to record lows markets are clearly nor pricing in much in the way of European growth ahead. Federal Reserve Chairman Jerome Powell last week said the central bank will act as appropriate to sustain expansion. Sure enough, investors are weighing the prospect of lower US rates.

One thing is certain. The global monetary scene will remain extremely accommodative for the foreseeable future, even if it becomes no more so. This low-rate environment should ensure that gold is at least underpinned even if the markets do get some better trade news in due course. Even solid signs of progress between Washington and those countries which have irked the White House with persistent trade surpluses may not be the magic cure for the global economy’s malaise which many clearly hope it will be.

The coming week will bring little in the way of first-tier economic data. European Central Bank President Mario Draghi will speak on Wednesday, a day which will also bring US Consumer Price Index figures. Both events could have some bearing on gold market action, but they are unlikely to move the story on enough to change the current mood.

That said gold has come up quite far, quite fast and, assuming that the trade story doesn’t meaningfully move on, it may pause for breath. It’s a neutral call from me this week.

Gold

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES