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
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
Oil - US Crude
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
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • 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/BdgFmkzWwW https://t.co/9j004hyzUZ
  • Learning how to trade does not have to feel foreign. Hone your skills and build your confidence with free DailyFX guides today! https://t.co/lnxaQOsgid https://t.co/7myL4vGnt8
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yxE0OmLIP0
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUd00T https://t.co/iSrjZTeWwf
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/WeLInepZiD https://t.co/7B0KI8HehW
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM73cHA https://t.co/vGW5BygTXU
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/xngExEdFdu https://t.co/kqpJ6oGXgt
  • 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/F4dXbUzU3o https://t.co/G0ZWWVtSrZ
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfIZNKr https://t.co/5js6tWk5bY
  • The Euro has regained lost ground against its major counterparts recently. Are further gains in the offing or is this just a short-term countertrend correction? EUR/USD, EUR/JPY, EUR/GBP, EUR/NZD key levels. Get your market update from @DanielGMoss here:https://t.co/Z71MZEIJWC https://t.co/YAr1kN4eKd
Gold Fundamental Outlook Hinges on Shifts in Trader Sentiment

Gold Fundamental Outlook Hinges on Shifts in Trader Sentiment

David Song, Strategist
Spot Gold Chart

Gold Talking Points

The price of gold pulls back from a fresh yearly high ($1748) despite the growing number of COVID-19 cases as President Donald Trump unveils fresh guidelines in opening up the US economy.

Fundamental Forecast for Gold: Bullish

The price of gold gives back the advance from earlier this month as the Trump administration outlines a three-phased approach to reopen the US economy, with Minneapolis Fed President Neel Kashkari, a 2020-voting member on the Federal Open Market Committee (FOMC) stating that the plan “seems consistent with the advice and the feedback that we've heard from health experts” during an interview with Fox News.

Mr. Kashkari went onto say that a staged approach “makes sense” amid the ongoing efforts to flatten the COVID-19 curve, and the unpresented measures taken by monetary as well as fiscal authorities may help to jumpstart the US economy as Chairman Jerome Powell pledges to “to ensure that the eventual recovery is as vigorous as possible.

In turn, the price of gold may face a larger pullback over the coming days amid hopes of a V-shaped recovery, but the fresh update to China’s Gross Domestic Product (GDP) report foreshadows a larger-than-expected slowdown in economic activity as the growth rate contracts 6.7% per annum in the first quarter of 2020 versus forecasts for a 6.0% decline.

The economic shock from the coronavirus is likely to influence the financial markets throughout 2020 as New York Fed President John Williams warns that the “extraordinary uncertainty about the future course of the pandemic have set off a tidal wave of flows of money away from riskier investments,” and the low interest rate environment may continue to act as a backstop for gold as market participants look for an alternative to fiat-currencies.

As a result, the fundamental outlook for gold remains constructive as the weakening outlook for global growth encourages a flight to safety, but shifts in trader sentiment may sway continue to sway gold prices as major central banks push monetary policy into uncharted territory.

With that said, recent price action warns of a larger pullback in bullion as it snaps the series of higher highs and lows from earlier this week, while the Relative Strength Index (RSI)reverses course ahead of overbought territory.

--- 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