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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/YelFfA2Vst
  • 🇮🇩 Interest Rate Decision Actual: 3.5% Expected: 3.5% Previous: 3.5% https://www.dailyfx.com/economic-calendar#2021-04-20
  • 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: https://t.co/IsnpfJhp91 https://t.co/5xuwJi0xvX
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.02% Silver: 0.36% Gold: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3QhJMfTWva
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.65% 🇳🇿NZD: 0.58% 🇨🇦CAD: 0.39% 🇬🇧GBP: 0.13% 🇨🇭CHF: 0.03% 🇯🇵JPY: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/3ngNFGV4CH
  • Heads Up:🇮🇩 Interest Rate Decision due at 07:30 GMT (15min) Expected: 3.5% Previous: 3.5% https://www.dailyfx.com/economic-calendar#2021-04-20
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.13% US 500: 0.08% Germany 30: -0.16% France 40: -0.19% FTSE 100: -0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/cmd7UutJDY
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/bg5cVcLvvW
  • (Commodities) Gold Prices Seesaw as US Dollar, Treasury Yields Diverge Before Netflix Earnings #Gold #XAUUSD #USD #Bonds https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/04/20/Gold-Prices-Seesaw-as-US-Dollar-Treasury-Yields-Diverge-Before-Netflix-Earnings.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/aYDFImOCGw
  • 🇬🇧 Claimant Count Change (MAR) Actual: 10.1K Previous: 86.6K https://www.dailyfx.com/economic-calendar#2021-04-20
Gold Price Blasts Through $2000 to Mark Fresh Record High

Gold Price Blasts Through $2000 to Mark Fresh Record High

David Song, Strategist

Gold Price Talking Points

The price of gold blasts through the psychologically important $2000 mark to tag a fresh record high ($2026), and the extreme reading in the Relative Strength Index (RSI) may continue to be accompanied by higher gold prices like the behavior seen earlier this year.

Gold Price Blasts Through $2000 to Mark Fresh Record High

The price of goldcontinues to trade to fresh yearly highs during every single month so far in 2020, and the bullish price action may persist over the remainder of the week as the extreme reading in the RSI coincide with the crowding behavior in the US Dollar.

The RSI sits in overbought territory for the third time in 2020 as bullion continues to exhibit a bullish behavior, and the price of gold may continue to push higher as long as the indicator holds above 70.

Image of IG Client Sentiment

At the same time, the IG Client Sentiment report continues to show retail traders net-long USD/CHF, USD/CAD and USD/JPY, while the crowd remains net-short AUD/USD, NZD/USD, EUR/USD and GBP/USD even though theDXY index plummets for sixth consecutive weeks.

In turn, current market conditions may keep gold prices afloat as the Federal Reserve pledges to “increase our holdings of Treasury and agency mortgage-backed securities at least at the current pace,” and the depreciation in the US Dollar may keep the price of gold afloat as Chairman Jerome Powell and Co. appear to be on track to retain the current policy throughout the remainder of the year.

With that said, the extreme reading in the RSI along with the crowding behavior in the US Dollar may keep bullion afloat, and the low interest rate environment along with the ballooning central bank balance sheets may continue to act as a backstop for the price of gold as market participants look for an alternative to fiat-currencies.

Gold Forecast
Gold Forecast
Recommended by David Song
Download the 3Q 2020 Forecast for Gold
Get My Guide

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 technical outlook for the price of gold remains constructive as it trades to fresh yearly highs during every single month so far in 2020, with the bullish behavior also taking shape in August as precious metal tags a new 2020 high ($2026).
  • The price of gold cleared the previous record high price recorded in September 2011 ($1921) even though the Relative Strength Index (RSI) failed to retain the upward from June, but the indicator registered a new extreme reading (88) for 2020 as the oscillator pushed into overbought territory for the third time this year.
  • The extreme reading in the RSI is likely to be accompanied by higher gold prices amid the price action seen in February, and the bullish behavior may persist as long as the indicator holds above 70.
  • The break/close above the Fibonacci overlap around $1971 (100% expansion) to $1985 (261.8% expansion) has pushed the price of gold above the psychologically important $2000 mark, but need a closing price above the $2023 (78.6% expansion) area to bring the $2092 (161.8% expansion) region on the radar.
Traits of Successful Traders
Traits of Successful Traders
Recommended by David Song
Traits of Successful Traders
Get My Guide

--- 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