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
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
GBP/USD
Bearish
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
Gold
Bearish
Oil - US Crude
Bearish
Bitcoin
Mixed
More View more
Real Time News
  • What is the best time to trade #forex? Find out: https://t.co/NbM2tJK9cl https://t.co/fHocBaBArd
  • Live Webinar: Join Me today at 14:00 GMT. In this session we will talk about most common directional and momentum indicators and how to use them https://www.dailyfx.com/webinars/422047211 https://t.co/KC5pPMVuTh
  • UK Election Poll (Ipsos Mori) - Conservatives: 44% (unch) - Labour party: 32% (+4ppts)
  • GBP/JPY Faces Key Resistance - British Pound vs Japanese Yen Price Forecast More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/gbp-jpy/2019/12/06/GBPJPY-Faces-Key-Resistance-British-Pound-vs-Japanese-Yen-Price-Forecast-MK.html?CHID=9&QPID=917714 https://t.co/9wT3927vEu
  • LIVE NOW: Join Currency Strategist @PaulRobinsonFX as he runs through his favorite charts and potential set-ups for the week ahead in the FX and CFDs market. Register here: https://www.dailyfx.com/webinars/108721147?CHID=9&QPID=917720
  • Have central banks run out of ammo? And where are central banks headed? Find out from Cross-asset class trader, @JohnNetto only on Trading Global Markets Decoded #podcast with @MartinSEssex here: https://t.co/Twr44cZ1GB https://t.co/iFowV6YBBj
  • LIVE IN 30 MIN: Join Currency Strategist @PaulRobinsonFX as he runs through his favorite charts and potential set-ups for the week ahead in the FX and CFDs market. Register here: https://www.dailyfx.com/webinars/108721147?CHID=9&QPID=917720
  • AUD/USD Technical Analysis: Choppy Aussie Dollar Still Aims Lower - https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2019/12/06/AUDUSD-Technical-Analysis-Choppy-Aussie-Dollar-Still-Aims-Lower.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #AUDUSD #technicalanalysis https://t.co/uE75UEjmIj
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT as he goes over London #FX & #CFD charts for the next week. Register here: https://t.co/CoMkMA0pdF https://t.co/w52tn0x11T
  • The $JPY has, at last, made some clear headway against the US Dollar, but its bulls have yet to nail down their channel break. Get your market update from @DavidCottleFX here:https://t.co/ADgQ3idxYJ https://t.co/nZzXEfImw6
Gold Price Analysis: Critical Support at Risk of Break on Trade Wars and ETF Selling

Gold Price Analysis: Critical Support at Risk of Break on Trade Wars and ETF Selling

2018-08-31 11:00:00
Justin McQueen, Analyst
Share:

Gold Price Analysis and Talking Points:

  • Trade Jitters Keeps the Pressure on Gold
  • ETF Holders Continue to Sell Despite Bounce Back in Gold

See our quarterly gold forecast to learn what will drive prices through mid-year!

Trade Jitters Keeps the Pressure on Gold

The tensions between the US and China are likely to increase amid comments that President Trump is preparing to impose an additional $200bln of tariffs on Chinese goods as soon as next week. This in turn, is likely to prompt a retaliation from China, as has been the case on the previous occasions. Consequently, USD buying could prevail over demand for gold, which puts the psychological $1200/oz level at risk of a break.

Alongside this, Trump also rejected an offer from the EU to eliminate tariffs on cars, provided the US did the same. These comments from Trump prompted EU’s Juncker to state that the EU would be willing to raise tariffs if the US carried out such action. In turn, trade war concerns are back at the forefront of investors’ minds, spelling bad news for gold bulls.

Additional Analysis

Trade Wars: US Takes Aim at China and EU, Again – Nick Cawley, Market Analyst

ETF Holders Continue to Sell Despite Bounce Back

The continued outflows from the SPDR gold trust (world’s largest gold ETF) provides a telling sign that the bounce back in gold prices is fragile at best. Since July 23rd, holdings of the SPDR gold ETF has dropped some 5% amid the headwinds from trade wars, rising USD and record speculative short positioning. Subsequently, the drop off in gold ETF holdings poses a risk that gold could be heading lower once again.

Gold Price vs SPDR Gold ETF Holding

Gold Price Analysis: Critical Support at Risk of Break on Trade Wars and ETF Selling

GOLD PRICE CHART: Daily Time-Frame (November 2016-August 2018)

Gold Price Analysis: Critical Support at Risk of Break on Trade Wars and ETF Selling

Chart by IG

Gold Technical Levels

S1: $1200 (Psychological)

S2: 1180 (76.4% Fib)

R1: $1215 (61.8% Fib)

R2: $1236

R3: $1250

GOLD TRADING RESOURCES:

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES

News & Analysis at your fingertips.