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.

Free Trading Guides
EUR/USD
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
GBP/USD
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
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
  • Dow Jones & Dax 30 levels to watch ahead of the fed from @PeterHanksFX here: https://t.co/iUIrsygKz2
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/vtHhdnF82Q
  • How can confidence in trading help with avoiding #FOMOintrading? Find out from @WVenketas here: https://t.co/MY7j9ISn4S https://t.co/n7XwfiDZz2
  • The week saw a slightly more dovish than expected RBA minutes increase the importance of the latest labour market report, which showed an uptick in the unemployment rate to 5.3%. Where is $AUDUSD heading? Find out from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/gmGjlGBvjv
  • #OOTT https://t.co/TLgP7dUqFv
  • #Silver’s recent bull run may have run its course in the short-term with the sharp sell-off from the September 4 high print at $19.66/oz.Where is Silver heading? Get your market update from @nickcawley1 here: https://t.co/oVAZ4wPR7z https://t.co/1LvLXmqnwx
  • RT @Frances_Coppola: NY Fed thinks reserve hoarding by a small number of banks caused the repo tantrum. Question is, why are they hoarding…
  • Gold Prices Weekly Technical Forecast, Finding Upside Commitment? #GoldPrice #XAUUSD #Gold - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/09/20/Gold-Prices-Weekly-Technical-Forecast-Finding-Upside-Commitment.html?utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/CgaaEzb2li
Gold Prices Eye 2019 High Following Dovish Fed Testimony

Gold Prices Eye 2019 High Following Dovish Fed Testimony

2019-07-11 00:30:00
David Song, Currency Strategist
Share:

Gold Price Talking Points

Gold quickly pares the decline from earlier this week as Federal Reserve officials show a greater willingness to switch gears, and the price of bullion may exhibit a more bullish behavior over the coming days as the Relative Strength Index (RSI) pushes back towards overbought territory.

Gold Prices Eye 2019 High Following Dovish Fed Testimony

Gold looks poised to test the 2019-high ($1439) as Fed Chairman Jerome Powell strikes a dovish tone in front of Congress, and it seems as though the Federal Open Market Committee (FOMC) is on track to insulate the US economy as “many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened.

The 224K expansion in US Non-Farm Payrolls (NFP) appears to have done little to influence the monetary policy outlook as Chairman Powell insists that “there is a risk that weak inflation will be even more persistent than we currently anticipate,” and the comments suggest the central bank will continue to alter the forward guidance over the coming months as “uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.”

It remains to be seen if the Fed will reestablish a rate easing cycle as St. Louis Fed President James Bullard, a 2019-voting member on the FOMC, continues to endorse an “insurance cut,” with the official arguing that the central bank was “overly preemptive” by delivering four rate hikes in 2018.

Image of Fed Fund futures

In turn, Fed Fund futures still highlight a 100% probability for at least a 25bp rate cut on July 31, and Chairman Powell and Co. may continue to change their tune over the coming months as President Donald Trump tweets “our most difficult problem is not our competitors, it is the Federal Reserve.”

With that said, gold prices may continue to benefit from the current environment amid the threat of a policy error, and the price of bullion may exhibit a more bullish behavior over the remainder of the year as market participants look for an alternative to fiat currencies.

Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss potential trade setups.

Gold Price Daily Chart

Image of gold daily chart

  • The broader outlook for gold is no longer mired by a head-and-shoulders formation as both price and the Relative Strength Index (RSI) break out of the bearish trends from earlier this year.
  • Moreover, the recent pullback in bullion appears to have run its course as the Fibonacci overlap around $1380 (100% expansion) to $1385 (78.6% expansion) offers support, with the topside targets coming back on the radar as the price of gold carves a fresh series of higher highs and lows.
  • The move above the $1418 (100% expansion) to $1422 (23.6% expansion) region may spur a more meaningful run at the $1444 (161.8% expansion) to $1448 (382.% retracement) area, with the next topside hurdle coming in around $1457 (100% expansion).
  • Will keep a close eye on the RSI as it continues to track the upward trend from earlier this year, with the oscillator working its way back towards overbought territory; move above 70 raises the risk for a larger advance in gold as the bullish momentum gathers pace.

For more in-depth analysis, check out the 3Q 2019 Forecast for Gold

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 2019.

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES

News & Analysis at your fingertips.