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
GBP/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
More View more
Real Time News
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
  • 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/hqW38VawJl
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open https://t.co/BKCLJTDk9h
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • 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/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
Gold Prices Target 2019 High as Fed Sets Course to Cut Interest Rates

Gold Prices Target 2019 High as Fed Sets Course to Cut Interest Rates

David Song, Strategist
XAUUSD

Gold Price Talking Points

Fresh data prints coming out of the US economy may do little to curb the near-term advance in the price of gold as the Federal Reserve appears to be on a preset course to reduce the benchmark interest rate.

Fundamental Forecast for Gold: Bullish

Gold prices look poised to test the 2019-high ($1439) following the semi-annual testimony with Federal Reserve Chairman Jerome Powellprepares US lawmakers for an imminent shift in monetary policy.

The prepared remarks suggest the Federal Open Market Committee (FOMC) will respond to the shift in trade policy as Chairman Powell warns that “uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.”

Moreover, it seems as though the FOMC will continue to adjust the forward guidance over the coming months as President Donald Trump tweets “China is letting us down,” and the ongoing tensions may push the Fed to reverse the four rate hikes from 2018 as the “apparent progress on trade turned to greater uncertainty.”

FED

With that said, updates to the US Retail Sales report is likely to have a limited impact on the monetary policy outlook even though private sector spending is expected to increase 0.2% in June as Fed Fund futures continue to highlight a 100% probability for at least a 25bp rate cut on July 31.

It remains to be seen if the Federal Reserve will implement a rate easing cycle as St. Louis Fed President James Bullard, a 2019-voting member on the FOMC, endorses an “insurance cut,” but the preset course for monetary policy may ultimately hinder the central bank’s flexibility as the US economy shows little signs of a looming recession.

In turn, gold prices may continue to benefit from the current environment amid the threat of a policy error, and the price of bullion may exhibit a more bullish behavior over the remainder of the year as market participants look for an alternative to fiat currencies.

Gold Price Daily Chart

XAUUSD

The broader outlook for gold is no longer mired by a head-and-shoulders formation as both price and the Relative Strength Index (RSI) break out of the bearish trends from earlier this year.

At the same time, the recent pullback in bullion appears to have run its course as the Fibonacci overlap around $1380 (100% expansion) to $1385 (78.6% expansion) offers support but need a move back above the $1418 (100% expansion) to $1422 (23.6% expansion) region to bring the topside targets back on the radar.

First area of interest comes in around $1444 (161.8% expansion) to $1448 (38.2% retracement) followed by the $1457 (100% expansion) region.

Additional Trading Resources

For more in-depth analysis, check out the 3Q 2019 Forecast for Gold

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2019

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES