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
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
Wall Street
Bearish
Gold
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
GBP/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
USD/JPY
Mixed
More View more
Real Time News
  • 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/lIJdiz4xSz https://t.co/YUhC9cCDpy
  • The US Dollar has spent much of October giving back September’s gains. Is there any hope for change? Get your #currencies update from @JStanleyFX here: https://t.co/3EHa6PV5yH https://t.co/PrP9J2klJk
  • 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/UalZ8cRSXB https://t.co/wDVd2QvcjO
  • The longer-term EUR/USD outlook will hinge on Thursday’s ECB guidance; any hint of a further easing of Eurozone monetary policy would weaken it, but that is far from guaranteed. Get your #currencies update from @MartinSEssex here: https://t.co/RmHCfIwdqp https://t.co/hvETa6mtft
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true. Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/M8WTvZgx2K
  • The Australian Dollar was under selling pressure this past week, but it held its ground. Bearish patterns brew in AUD/USD and AUD/JPY. Will EUR/AUD, GBP/AUD try to break higher again? Get your #currencies update from @ddubrovskyFX here: https://t.co/04kzJSqgNG https://t.co/ulPk1UneMM
  • Stocks are set to endure a string of data releases with market-moving potential in the week ahead in the form of tech earnings, European GDP and more, even as the US Presidential election clamors for the spotlight. #equities update from @PeterHanksFX here https://t.co/R6tpEvfXJb https://t.co/7koHTyh2AK
  • As we round our way towards a new week, Cable is within the confines of a bullish structure with beginnings back in September. Get your #currencies update from @PaulRobinsonFX here: https://t.co/NIbRTVmjqq https://t.co/zYma4Iq4dP
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/UGhbX6kn3H https://t.co/NE2RB1NT55
  • 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/MVwUUltt6R
Gold May Surrender on Lockdowns, Vice Presidential Debate, Fiscal Stimulus Stalemate

Gold May Surrender on Lockdowns, Vice Presidential Debate, Fiscal Stimulus Stalemate

2020-10-03 16:00:00
Dimitri Zabelin, Analyst
Share:

Gold Fundamental Outlook: Bearish

  • Gold prices could fall if lockdown policies hurt economic growth and inflation prospects
  • Ongoing US fiscal stimulus talks adding additional uncertainty to US political landscape
  • First vice presidential debate may push XAU/USD higher if Kamala Harris outperforms
Gold Forecast
Gold Forecast
Recommended by Dimitri Zabelin
Get Your Free Gold Forecast
Get My Guide

Coronavirus Spike Pressuring Lawmakers to Extend or Reimpose Lockdowns

Coronavirus cases continue to rise not only in the United States – the epicenter of Covid-19 – but also around the world, prompting governments to reimpose or extend economically-crippling lockdown policies. While economic data and financial markets swiftly recovered after both cratered in March, the initial rally appears to now be fizzling out as the effects of the stimulus measures that arguably propelled it to these levels wane.

Covid-19 cases now stand at a little over 1 million, and protestors are starting to erupt. This is not only due to social turbulence – e.g. race relations, a topic of the first US presidential debate – but also from citizens who oppose extended and stricter shelter-in-place orders. Measures that contain the virus may come at the cost of revived economic activity, risking an extended and bumpy recovery.

Inflation expectations are reflecting a more pessimistic view of price growth after surging from March through late-July/early-August. Not entirely by coincidence, gold – an anti-fiat hedge – also spiked in part from expectations of rising price growth but also from a weaker US Dollar. However, with this dynamic now wilting, demand for the precious metal may be substituted for highly-liquid havens like the Greenback.

Fiscal Stimulus Stalemate May Rattle Confidence

Another factor that may cause investors to scuttle away from gold and into caves of comparatively less-risky assets is the ongoing statement between Republicans and Democrats over another stimulus package. The cost of the negative externality of bipartisan intransigence is being incurred by investors and economists who fear that without additional aid, economic activity may sharply contract.

Democrats are looking to put through a $2.2 trillion stimulus package with some provisions to make it palatable for their colleagues across the aisle. Having said that, reconciling the Trump administration’s stance on not going above approximately $1.6t for another stimulus package may be a stalling point that spoils risk appetite. In that scenario, gold prices may retreat if risk aversion ensues.

Top Trading Lessons
Top Trading Lessons
Recommended by Dimitri Zabelin
How can you overcome common pitfalls in FX trading?
Get My Guide

Vice Presidential Debate May Catalyze Market Volatility

Market volatility may also be amplified by uncertainty about the outcome of the first vice presidential debate on October 7. Senator Kamala Harris will be going up against Trump’s vice Mike Pence with Washington Bureau Chief for USA Today Susan Page as the moderator of the debate.

If the outcome of the debate swings more in Ms. Harris’ favor, based on previous analysis, it could help lift market mood if it increases Biden’s popularity. In the coming weeks, political uncertainty as it relates to the 2020 election may continue to weigh on sentiment, potentially endangering gold prices from retesting their all-time high at 2075.14.

Gold Forecast
Gold Forecast
Recommended by Dimitri Zabelin
Get Your Free Gold Forecast
Get My Guide

--- Written by Dimitri Zabelin, Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or@ZabelinDimitrion Twitter

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

DISCLOSURES