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
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
GBP/USD
Mixed
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
More View more
Real Time News
  • Market snapshot: US equity futures pointing higher while FX markets remain mixed
  • (Asia AM) The #SP500 shrugged off risk aversion to end last week higher, but upside momentum seems to be fading. US markets are offline today, raising the risk of volatility - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/05/24/SP-500-Struggling-at-Resistance-Volatility-Risk-Ahead-Elevated.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/RJXBa0tyS5
  • LIVE NOW: In this session, Strategist @DavidJSong will discuss trading strategies for the top event risk in the week ahead https://www.dailyfx.com/webinars/175202251
  • LIVE IN 30 MIN: In this session, Strategist @DavidJSong will discuss trading strategies for the top event risk in the week ahead https://www.dailyfx.com/webinars/175202251
  • The possibility of a Covid-19 cure by year end keeps market sentiment high despite ongoing political tensions. Get your $USDMXN market update from @HathornSabin here: https://t.co/6DIf6krA3E https://t.co/IxeRbjHpQm
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/qqWZkK1G8B
  • The commodity currencies, AUD, CAD, and NZD, which typically benefit from their higher yield profile relative to other currencies (the carry trade), no longer hold this advantage. Get your #currencies market update from @CVecchioFX here: https://t.co/3oWXhp0hCX https://t.co/qOgXnf0JKK
  • The long-term outlook for the Euro has been boosted significantly by a Franco-German proposal for a €500 billion coronavirus Recovery Fund, even though an agreement is not yet close. Get your $EURUSD market update from @MartinSEssex here: https://t.co/onP43pXuDi https://t.co/nynDJ9P6br
  • On Friday, EUR/GBP surged to an over six-week high at 0.8940 then closed the weekly candlestick in the green with a 2.3% gain. Get your $EURGBP market update from @malkudsi here: https://t.co/ln09Ijn7rd https://t.co/OCe7fzGGC0
  • The Canadian Dollar has proven stable in recent weeks following a dramatic turn lower in March, guided to the downside by energy markets. Get your $USDCAD market update from @CVecchioFX here: https://t.co/7tlrn74X3t https://t.co/OGqZzWaxU4
Gold Price Stuck Between a Strong USD and Heightened Trade War Risk

Gold Price Stuck Between a Strong USD and Heightened Trade War Risk

2018-11-06 08:58:00
Nick Cawley, Strategist
Share:

Gold Prices, News and Analysis

  • Gold underpinned by a weak US dollar, but higher US interest rates are inevitable.
  • US-Iran trade sanctions are ratcheting up risk.

The brand new DailyFX Q4 Gold Forecast is now available to help traders navigate the market.

Are you new to gold trading or are you looking to improve your trading skill sets? We have recently produced an in-depth primer on How to Trade Gold: Top Gold Trading Strategies and Tips.

Gold Playing a Waiting Game

Gold continues to be buffeted by a combination of a strong US dollar and increased trade war fears after the US unveiled its latest sanctions on Iran Monday. US President Donald Trump unveiled a wide-range of sanctions, including shipping, oil and the financial sector. The risk-off sentiment has given the precious metal a healthy bid - gold currently trades around $1,232/oz. – but the upside remains capped by the strength of the US dollar with another 0.25% interest rate hike – the fourth this year - fully expected in December. Today’s US Midterm Elections are also likely to influence the precious metal and keep trade muted in the short-term, but risk and USD strength remain the market drivers.

The daily gold chart shows recent highs up to $1,243.5/oz. – and Fibonacci retracement at $1,244/oz. - acting as short-term resistance if gold breaks above $1,236.6/oz. After this the July 9 lower high at $1,266/oz. comes into play. On the downside, the 20-day moving average at $1,228.8/oz. guards $1,215.4/oz.

Gold Daily Price Chart (November 2017 - November 6, 2018)

Gold Price Stuck Between a Strong USD and Heightened Trade War Risk

Gold Positioning: Retail Remain Long

IG Retail Sentiment shows 79.4% of traders are net-long gold, a bearish contrarian indicator. However the combination of current sentiment and recent changes gives us a mixed Spot Gold trading bias.

We are interested in your opinion and trading strategies for Gold. You canshare your thoughts, views or analysis with us using the comments section at the end of the article or you can contact the author via email at nicholas.cawley@ig.com or via Twitter @nickcawley1.

--- Written by Nick Cawley, Analyst

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

DISCLOSURES

News & Analysis at your fingertips.