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
Oil - US Crude
Mixed
Wall Street
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
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • 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/qMBxzMWy3t
  • Heads Up:🇧🇷 Inflation Rate YoY (APR) due at 12:00 GMT (15min) Expected: 6.76% Previous: 6.1% https://www.dailyfx.com/economic-calendar#2021-05-11
  • RT @KyleR_IG: https://t.co/dvJqnUZcsk
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.02%, while traders in Wall Street are at opposite extremes with 74.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5Tt68HR25h
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-11
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmIoVZv https://t.co/dOChzDPvBW
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.61% Gold: 0.26% Oil - US Crude: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FgSiJ4PcT3
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇳🇿NZD: 0.27% 🇦🇺AUD: 0.24% 🇯🇵JPY: 0.05% 🇨🇦CAD: 0.00% 🇨🇭CHF: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qhfolQdLUG
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.43% US 500: -0.70% France 40: -1.89% FTSE 100: -2.07% Germany 30: -2.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HjUzIke5gV
  • ZEW economic sentiment soars in May. #zew #euro #eurusd @DailyFX https://t.co/jEIeoeotgq
Gold Weekly Forecast: More Upside Likely - Can it Be Sustained?

Gold Weekly Forecast: More Upside Likely - Can it Be Sustained?

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • Gold has managed to keep bullish momentum as yields fall
  • XAU/USD key levels to watch

GOLD TAKES ADVANTAGE OF WEAKER YIELDS

After a rather dull start to the week, gold has managed to break above key Fibonacci resistance (23.6% at $1,768), underpinned by a softer USD and a notable retracement in bond yields. Now that markets have had time to digest the positive economic data out this past week, the current price action seems to suggest that markets are trusting Powell’s rhetoric centered on a stable and gradual economic recovery, allowing for interest rates to be depressed for longer, and playing down previous fears about excessive inflation, which has allowed gold to catch up from it previous bout of weakness.

Market participants will continue to monitor closely the move in bond yields to determine gold price momentum given the significant negative influence that rising bond yields have on the precious metal. The USD is also a key variable and the currency is starting to look a bit oversold against other majors, so we could see XAU/USD struggling to keep up positive momentum if the Dollar is able to stem some of its recent weakness.

Advertisement

XAU/USD KEY LEVELS:

The daily gold chart shows the formation of a short-term double bottom at $1,678 which has allowed for a reversal in momentum as new buyers have come into the market. A key area of resistance to be cleared in the next week will be the lower ascending trendline at $1,781, at which point it may be turned into short-term support as gold faces its next resistance in the $1,820 – 40 area. If we clear this area then this could develop into a major move.

XAU/USD Daily Chart

Gold Weekly Forecast: More Upside Likely - Can it Be Sustained?

Source: Refinitiv

Fibonacci Confluence on FX Pairs

Learn more about the stock market basics here or download our free trading guides.

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES