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
Bullish
USD/JPY
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
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • RT @next_china: U.S., China chief trade negotiators spoke by phone on Saturday, Xinhua reports https://t.co/dMQtd0g4jY
  • The $AUDUSD and $EURUSD downtrend may prolong as traders counterintuitively buy into their descent. Meanwhile, the USD/CAD uptrend may accelerate on rising net-short bets. Get your market update from @ddubrovskyFX here: https://t.co/dlzJ31kf3f https://t.co/xp8P9MmCgb
  • As we head into next week, Cable is continuing to digest the massive leg higher last month, which at some point soon could mean another surge. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/LJ42YhDe3X https://t.co/5hGwhGBpLB
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/urMnUCq4fn
  • RT @markets: White-hot pot stocks have flamed out in spectacular fashion https://t.co/3GsVsRyZaZ
  • What is the best time to trade #forex? Find out: https://t.co/M9R46r5ewa #tradingstyle https://t.co/gJ1QDrox67
  • #Gold prices may be given a tailwind from the FOMC minutes and escalating trade war risks if they fuel demand for anti-fiat assets amid expectations of additional Fed easing. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/OJ7WUY9W7E $gld https://t.co/kBp3opzptm
  • Why should you set trading goals? How can it help regardless of what your #tradingstyle is? Find out: https://t.co/AYdD7ODlv1 https://t.co/G0ftVurNNN
  • Manning the penalty box today...i hope there aren't too many visitors https://t.co/1y81Li7laL
  • Do you think your #tradingstyle is of a #FOMO trader? Find out how you can turn that to #JOMO? Find out: https://t.co/79Q4pYdVEd https://t.co/S82AOd5AeP
Gold Price Analysis: Key Support in Focus as Yuan Eyes Psychological Level

Gold Price Analysis: Key Support in Focus as Yuan Eyes Psychological Level

2018-11-09 09:00:00
Justin McQueen, Analyst
Share:

Gold Price Analysis and Talking Points:

  • Gold Softens as Yuan Eyes Retest of 7.00 Level
  • Fed Remains Upbeat, USD Buying Continues

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

Gold Softens as Yuan Eyes Retest of 7.00 Level

Gold prices have struggled to push higher with a lack of buying interest to take the precious metal above 1240. Alongside this, with the rally in the Chinese Yuan at the backend of last week fading, gold prices are on course for its largest weekly decline since August. The Chinese Yuan is trading at 1-week lows and is continuing to trend lower with USDCNH on course to make another retest of the 7.00 handle. Amid the midterm election outcome, the Trump administration is likely to re-focus their attention on the current trade spat with China. Optimism over a trade deal in the near-term between the US and China had been boosted last week as Trump had reportedly asked officials to draft a possible trade deal. However, immediately after the midterm election, this optimism had faded with the US looking to impose new duties on Chinese aluminium sheet products, which in turn could see Gold prices pressured in the near-term.

Fed Remains Upbeat, USD Buying Continues

Last night saw the latest FOMC announcement, which gave little in the way of new information. The Fed are largely in a pre-set course which will see them raise rates at December, money markets pricing in an 80% probability of a hike. Recent volatility in financial markets had been dismissed by the Fed, who highlighted that the underlying US economy remains strong and as such, USD and US yields rose, consequently sapping demand from the precious metal, despite the softer tone in equity markets.

GOLD TRADING GUIDE

GOLD PRICE CHART: Daily Time-Frame (Feb-Nov 2018)

Gold Price Analysis: Key Support in Focus as Yuan Eyes Psychological Level

Chart by IG

Momentum remains weak for gold prices with support at 1208 the next target for sellers. A close below the 23.6% Fibonacci Retracement raises possibility of a move south of the 1200 level. Eyes are on the Chinese Yuan for further downside, which has increased its influence on the precious metal relative to the USD.

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.