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
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
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
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
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
  • USD/JPY is bucking the trend in USD weakness, tentatively putting it on a path towards higher levels. Get your $USDJPY technical analysis from @PaulRobinsonFX here: https://t.co/RnrBCFE3gt https://t.co/hTSdTcIwZY
  • The Canadian Dollar gained with government bond yields. Might USD/CAD find its way to current 2020 lows? Canada’s benchmark stock index, the TSX Composite, faces the March high.Get your $USDCAD market update from @ddubrovskyFX here:https://t.co/0Ba8E2S7vC https://t.co/JLUTzF6xlY
  • IG Client Sentiment is warning that the S&P 500, gold prices and AUD/USD could fall ahead as upside exposure accumulates. What are key technical levels to watch for next? Find out from @ddubrovskyFX here: https://t.co/YsBypn73vy https://t.co/erPb9HMRVc
  • The US Dollar could be readying to rise against the Singapore Dollar and Indonesian Rupiah ahead. Will USD/PHP and USD/MYR also follow this outlook? Find out from @ddubrovskyFX here: https://t.co/xvMPZha5SB https://t.co/P9QLmnY1Fg
  • The Euro has been struggling to maintain its upside momentum. Is EUR/USD readying to turn lower? EUR/AUD may be aiming to rise, but has EUR/CAD topped? Find out from @ddubrovskyFX here: https://t.co/vlJM3iQIYS https://t.co/8FGl10wDto
  • Third consecutive weekly gain in the #SP500 as of today's close, rising 0.63% #Fed balance sheet gained by 0.18% over the same period after shrinking -0.06% previously Generally speaking, the size of the b/s has remained more or less unchanged for a month https://t.co/0TrEA5RGmA
  • The outlook for gold might look a little tenuous at the moment, but this won’t be the first time a strong bull market has shown signs of a potential top due to short-term price action. Get your $XAUUSD technical analysis from @PaulRobinsonFX here: https://t.co/N8a84hRnHN https://t.co/jCEkFzCxEr
  • Well, I don't know who has had it worse this week: Barca or Kodak
  • GBP/USD is either treading water at resistance and is nearing a breakout or is working on developing a top. Get your $GBPUSD technical analysis from @PaulRobinsonFX here:https://t.co/RnrBCFE3gt https://t.co/bDWWjzT57m
  • Stop watching the Champions League game. The FX markets are still open
Gold Rebound Fizzles Amid Upbeat U.S. Non-Farm Payrolls (NFP) Report

Gold Rebound Fizzles Amid Upbeat U.S. Non-Farm Payrolls (NFP) Report

2018-09-07 15:00:00
David Song, Strategist
Share:

Gold Talking Points

Gold prices are back under pressure as fresh updates to the U.S. Non-Farm Payrolls (NFP) report boost bets for higher interest rates, and the precious metal may continue to lose ground ahead of Fed meeting on tap for later this month as the central bank is widely expected to raise the benchmark interest rate to a fresh threshold of 2.00% to 2.25%.

Image of daily change for major currencies

Gold Rebound Fizzles Amid Upbeat U.S. Non-Farm Payrolls (NFP) Report

Please add a description for the image.

The rebound from the 2018-low ($1160) continues to unravel as the U.S. economy adds 201K jobs in August, with Average Hourly Earnings unexpectedly climbing to 2.9% from 2.7% the month prior, and signs of a more robust labor market may encourage the Federal Open Market Committee (FOMC) to implement a hawkish rate-hike on September 26 as the central bank largely achieves to its dual mandate for full-employment and price stability.

Image of fed fund futures

The FOMC may continue to prepare U.S. households and businesses for higher borrowing-costs as ‘members expected that further gradual increases in the target range for the federal funds rate would be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term,’ but market participants may put increased emphasis on the Fed’s Summary of Economic Projections (SEP) as Chairman Jerome Powellsees a limited threat for above-target inflation.

Image of IG client sentiment

Until then, gold remains vulnerable to further losses as the inverse relationship between the precious metal and the greenback continues to take shape, with the IG Client Sentiment Report still showing retail sentiment near extremes as 83.1% of traders remain net-long bullion. The ratio of traders long to short sits at 4.93 to 1 as the number of traders net-long is 0.1% lower than yesterday and 0.1% higher from last week, while the number of traders net-short is 9.7% lower than yesterday and 9.4% lower from last week.

The persistent skew in retail positioning offers a contrarian view to crowd sentiment, with recent price action warning of a further decline in gold as both price and the Relative Strength Index (RSI) snap the bullish formations carried over from the previous month.

Gold Daily Chart

Image of gold daily chart
  • Downside targets are coming back on the radar following the failed attempt to test the August-high ($1225), with the lack of momentum to push back above the $1210 (50% retracement) to $1219 (61.8% retracement) area raising the risk for a move back towards 1172 (61.8% retracement) to $1177 (78.6% retracement).
  • Need a break/close below the Fibonacci overlap to bring up the 2018-low ($1160), which sits just above the $1156 (61.8% retracement) hurdle.

For more in-depth analysis, check out the Q3 Forecast for Gold

Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

Additional Trading Resources

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 2018.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES

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.