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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.10%, while traders in US 500 are at opposite extremes with 68.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gvtwxfEvLB
  • Japan coronavirus response package: - Increase subsidy rates for firms to stem job losses - Allow 1 year tax payment delay for virus-shaken companies - Cut property tax to zero for smaller firms (BBG) #JPY #coronavirus
  • - Internal political rifts in Eurozone, #OPEC may be biggest Euro & Brent catalysts this week - Revived North-South tension in Eurozone may cause delays as Riyadh and Moscow dig in heels https://www.dailyfx.com/forex/fundamental/article/special_report/2020/04/06/Euro-Crude-Oil-May-Suffer-From-OPEC--Eurozone-Political-Rifts.html #oott
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/PVAmCCDR8w
  • LIVE IN 30 MIN: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267
  • Sharp move upward in AUDUSD with ASX 200 also sharply higher and Yen lower.
  • 🇦🇺 AUD TD Securities Inflation (YoY) (MAR), Actual: 1.5% Expected: N/A Previous: 1.6% https://www.dailyfx.com/economic-calendar#2020-04-06
  • RT @NAR: BREAKING | Abe set to declare coronavirus emergency for Japan https://t.co/WSk73dCs9Q
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/2:00 AM GMT for insight on the cross market weekly outlook. Register here: https://t.co/E213bTtq5C https://t.co/AZe7yLVyBL
  • Heads Up:🇦🇺 AUD TD Securities Inflation (YoY) (MAR) due at 01:00 GMT (15min), Actual: N/A Expected: N/A Previous: 1.6% https://www.dailyfx.com/economic-calendar#2020-04-06
Gold Price Retests Chart Resistance But USD Dominates

Gold Price Retests Chart Resistance But USD Dominates

2018-02-27 10:30:00
Nick Cawley, Analyst
Share:

Gold Talking Points

- Gold has gently moved higher but needs a boost to break upcoming technical resistance.

- New US Fed Chair Powell appears before Congress – how will USD react?

Gold Price Stuck in a Range for Now

The price of gold has nudged higher in the past week, aided by technical support – Fibonacci 38.2% retracement - around $1316/oz. The price now is capped by technical resistance – Fibonacci 23.6% retracement – at $1335/oz. and is unlikely to make break higher until the short-term direction of the US dollar is known. Traders may not have long to wait as US Federal Reserve chairman Jerome Powell makes his inaugural speech to Congress later today with traders looking for more clarity from the new Fed Chair over US monetary policy.

Markets are currently pricing in three 0.25% interest rate hikes in the US in 2018 with the first rise – to 1.75% - priced in for the next policy meeting on March 21. US 2-yr bond yields remain just a couple of basis points off their recent 2.27% high while US 10-year bond yields are around 10bps off their recent 2.96% high, both underpinning the expectations of three hikes this year.

The US Dollar Will Direct Gold in the Near-Term

The worry for the precious metal is that Fed Chair Powell may take a slightly more hawkish stance and say that a combination of the recently announced fiscal stimulus – US President Trump’s tax cuts – and the country’s near-full employment may increase domestic price pressure, leaving a fourth rate hike potentially on the table in 2018.

The gold chart below shows little in the way of direction with the stochastic indicator mid-market, albeit pointing higher – while the spot gold price is stuck between the 20- and 50-day EMAs. As noted before the gold price is at the top of the $1316/oz. - $1335/oz. Fibonacci range and would need a mildly dovish first testimony from the Fed’s Powell to break to the upside.

Gold Price Chart Daily Timeframe (October 23, 2017 – February 27, 2018)

Gold Price Retests Chart Resistance But USD Dominates

Chart by IG

If you are interested in trading gold, we have a wide range of technical and fundamental trading and educational guides that can help you along your journey.

We have also produced a revealing Traits of Successful Traders guide that will show you how to constantly improve and update your trading skills.

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

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

DISCLOSURES

News & Analysis at your fingertips.