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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar Tomorrow Morning at 8:30am ET on DailyFX!
  • According to GS, S&P 500 daily returns are positively correlated with flows. Over the last 3 months, flows have been strong, but the $SPX was flat (model predicted a 7% rally). When SPX returns and flows deviate, they tend to mean-revert in subsequent periods #trading
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • Further your forex knowledge and gain insights from our expert analysts @ddubrovskyFX and @FxWestwater on JPY with our free Q4 market analysis guide, available for free today.
  • How does stock market liquidity benefit its traders? Learn more here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here:
  • Quarterly earnings from Netflix and Tesla, two big tech companies, will take center stage next week and could set the trading tone for the S&P 500 and the Nasdaq 100. Get your weekly equities forecast from @DColmanFX here:
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things . Learn more here.
  • What is your forex trading style? Take the quiz and find out:
Gold Price Consolidation Unfazed by NFP Report, Dovish Fed Rhetoric

Gold Price Consolidation Unfazed by NFP Report, Dovish Fed Rhetoric

David Song, Strategist

Gold Price Talking Points

The price of gold appears to be stuck in a narrow range following the limited reaction to the US Non-Farm Payrolls (NFP) report, and the precious metal may continue to consolidate as plans to gradually restart the advanced economies spur speculation for a V-shaped recovery.

Gold Price Consolidation Unfazed by NFP Report, Dovish Fed Rhetoric

The price of gold is little changed from the start of the month as President Donald Trump tweets that “the USA will be purchasing, from our Farmers, Ranchers & Specialty Crop Growers, 3 Billion Dollars worth of Dairy, Meat & Produce for Food Lines & Kitchens,” and the unprecedented efforts by fiscal as well as monetary authorities may continue to restore investor confidence as Great Lockdown appears to have passed its peak.

In response, central banks may carry out a wait-and-see approach over the coming months as the Reserve Bank of Australia (RBA) insists “gradual recoveries should follow in the second half of the year, supported by the easing of restrictions and the significant expansion in both fiscal and monetary policies, and the response to the coronavirus may generate a V-shaped recovery as the Federal Reserve and its major counterparts expand their balance sheets in 2020.

However, Minneapolis Fed President Neel Kashkari, a 2020-voting member on the Federal Open Market Committee (FOMC), warns that “the worst is yet to come on the job front” during an interview on ABC, and went onto say that “Congress is going to need to continue to give assistance to workers who’ve lost their jobs” as major cities like New York remain on lockdown.

In turn, the slew of unconventional monetary policy tools may do little to jumpstart global growth as the FOMC emphasizes that “the “timing of the resumption of growth in the U.S. economy depended on the containment measures put in place,” and threat of a protracted recovery may push major central banks to deploy more non-standard measures as Chairman Jerome Powelland Co. remain “committed to using our full range of tools to support the economy in this challenging time.”

With that said, the low interest rate environment along with the ballooning central bank balance sheets may act as a backstop for goldas marketparticipants look for an alternative to fiat-currencies, but the price for bullion may continue to consolidate following the string of failed attempt to test the November 2012 high ($1754) as the Relative Strength Index (RSI) preserves the bearish formation carried over from the previous month.

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 price daily chart

Source: Trading View

  • The opening range for 2020 instilled a constructive outlook for the price of gold as the precious metal cleared the 2019 high ($1557), with the Relative Strength Index (RSI) pushing into overbought territory during the same period.
  • A similar scenario materialized in February, with the price of gold marking the monthly low ($1548) during the first full week, while the RSI broke out of the bearish formation from earlier this year to push back into overbought territory.
  • However, the monthly opening range for March as less relevant amid the pickup in volatility, with the decline from the monthly high ($1704) leading to a break of the January low ($1517).
  • Nevertheless, the reaction to the former-resistance zone around $1450 (38.2% retracement) to $1452 (100% expansion) instilled a constructive outlook for bullion especially as the RSI reversed course ahead of oversold territory and broke out of the bearish formation from February.
  • The break/close above $1710 (100% expansion) pushed the price of gold to a fresh yearly high ($1748) in April, but the precious metal continue to consolidate following the string of failed attempt to test the November 2012 high ($1754), while as the RSI preserves the bearish formation carried over from the previous month.
  • Will keep a close eye on the RSI as it approaches trendline resistance, with a break of the downward trend likely to be accompanied by higher gold prices as the bearish momentum abates.
  • Still need break/close above the Fibonacci overlap around $1733 (78.6% retracement) to $1739 (100% expansion) to bring the $1754 (261.8% expansion) region on the radar, which lines up with the November 2012 high ($1754).

--- 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.