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
More View more
Real Time News
  • Keppel Corp is seeking to buy Singapore Press Holdings (SPH) for S$2.2 billion following the spin-off of its media assets, and plans to delist and privatize the company - BBG
  • S&P 500 Futures Lift Nikkei 225, Regulatory Risks Hit Chinese Stocks https://www.dailyfx.com/forex/market_alert/2021/08/02/SP-500-Futures-Lift-Nikkei-225-Regulatory-Risks-Hit-Chinese-Stocks.html https://t.co/bBmLaL5aHB
  • 🇰🇷 Markit Manufacturing PMI (JUL) Actual: 53 Previous: 53.9 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Heads Up:🇰🇷 Markit Manufacturing PMI (JUL) due at 00:30 GMT (15min) Previous: 53.9 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 7 out of 11 S&P 500 sectors ended lower, with 58% of the index’s constituents closing in the red. Consumer discretionary (-2.78%), energy (-1.76%) and utilities (-0.87%) were among the worst performers, whereas materials (+0.40%) and real estate (+0.32%) outperformed. https://t.co/qC0SSsqCyR
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/3iISQtTzlX
  • RT @Yeap_IG: Short introduction to the #Supertrend technical indicator! https://t.co/ZczqF1ugEm
  • 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/nAa0fHHGbZ https://t.co/nAoZXAZFuD
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! https://t.co/lxd5fZnn4H
  • Bitcoin ended a 10 consecutive day advance with yesterday's bearish close - breaking pace only after it overtook the 100-day moving average. That 10-day climb matches the longest bull charge with only two other examples. $BTCUSD https://t.co/G5UdX96mn9
Gold Price to Face Fed Blackout Period Ahead of July Rate Decision

Gold Price to Face Fed Blackout Period Ahead of July Rate Decision

David Song, Strategist

Gold Talking Points

The price of gold pushed to a fresh monthly high ($1834) as Fed Chairman Jerome Powell relayed a dovish forward guidance in front of US lawmakers, but swings in risk sentiment may influence bullion over the coming days as the Federal Reserve enters the ‘quiet period’ ahead of the interest rate decision on July 28.

Fundamental Forecast for Gold: Neutral

The price of gold appears to be moving to the beat of its own drum as bullion no longer shows an inverse relationship with US Treasury yields, and it remains to be seen if the upcoming US data prints will influence the precious metal as the economic docket remains fairly light for the week ahead.

Gold Price to Face Fed Blackout Period Ahead of July Rate Decision

The slew of US housing data may do little to sway the Federal Open Market Committee (FOMC) as the minutes from the June meeting emphasized that the “the Committee's standard of substantial further progress was generally seen as not having yet been met,” and it seems as though the central bank will retain the current course for monetary policy as “participants agreed to continue assessing the economy's progress toward the Committee's goals and to begin to discuss their plans for adjusting the path and composition of asset purchases.”

The wait-and-see approach for monetary policy may keep the price of gold afloat as Chairman Powell and Co. brace for a transitory rise in inflation, but a growing number of Fed officials may change their tone over the coming months as St. Louis Fed President James Bullard, who votes on the FOMC in 2022, insists that “it’s time to end these emergency measures.

With that said, the price of gold may continue to move to the beat of its own drum as the looming US data prints are likely to have a limited impact on the monetary policy outlook, and swings in risk sentiment may influence bullion ahead of the next Fed rate decision as the central bank enters the blackout period.

--- 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