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
GBP/USD
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
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • The US Dollar remains in consolidation mode against the Philippine Peso and Indian Rupee. Will the Singapore Dollar weaken as $USDSGD rising support holds ahead? Find out from @ddubrovskyFX here: https://t.co/HZ8Loqj3Ey https://t.co/6PCFkdj3ka
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/Da10QUg9r1
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
  • Dow Jones & Dax 30 levels to watch ahead of the fed from @PeterHanksFX here: https://t.co/iUIrsygKz2
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/vtHhdnF82Q
  • How can confidence in trading help with avoiding #FOMOintrading? Find out from @WVenketas here: https://t.co/MY7j9ISn4S https://t.co/n7XwfiDZz2
Gold Price Nears Multi-Month Lows After Post-Fed Plunge

Gold Price Nears Multi-Month Lows After Post-Fed Plunge

2019-05-02 09:15:00
Nick Cawley, Analyst
Share:

Gold (XAU) Price Analysis and Charts.

  • Gold reverses lower after FOMC meeting and eyes fresh yearly low.
  • USD firms as Federal Reserve remains in ‘wait-and-see’ mode.

DailyFX Q2 Forecasts and Top 2019 Trading Opportunities.

Gold (XAU) Weakens Further as Fed Stands Pat

A whippy post-FOMC session for gold after the Federal Reserve indicated that US rates would remain unchanged for the foreseeable future. A brief rally was quickly bought to an end and the precious metal ended negative on the day, nearing a fresh yearly low. The Fed indicated that US inflation remained below target but suggested that no immediate rate cutes were needed and that it would continue to monitor price pressures. Market expectations of a 2019 rate cut were pared back slightly, giving the greenback a small boost.

Friday’s US Labour Report (NFPs) should now be the next driver of gold’s price action. Wednesday’s ADP employment report beat expectations, +275k against predictions of +180k, and while the correlation between this report and NFPs is not strongly correlated, the strength of the US jobs market remains clear. Monthly earnings and wages data will also need to be closely parsed.

The daily gold chart is looking weak and the precious metal needs a bout of risk-aversion, or a weak NFP release, to help steady or reverse the recent sell-off. The pattern of lower highs and lower lows off the mid-February high continues and if gold breaks below the April 23 low at $1,266.4/oz then the next zone of technical support, the 200-day moving average and the 50% Fibonacci retracement, is at $1,262/oz. This cluster of support may prove key in the coming days. A bullish reversal is likely to find resistance around recent highs between $1,287/oz and $1,289/oz.

How to Trade Gold: Top Gold Trading Strategies and Tips

Gold (XAU) Daily Price Chart (September 2018 – May 2, 2019)

Gold Price Nears Multi-Month Lows After Post-Fed Plunge

Trading the Gold-Silver Ratio: Strategies and Tips.

IG Client Sentiment data show that retail traders are 71.5% net-long gold, a bearish contrarian indicator. However, recent daily and weekly sentiment shifts suggest that the current gold trend may reverse higher.

--- Written by Nick Cawley, Market Analyst

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

Follow Nick on Twitter @nickcawley1

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

DISCLOSURES

News & Analysis at your fingertips.