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
Oil - US Crude
More View more

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • $USDCAD Daily Pivot Points: S3: 1.3162 S2: 1.3204 S1: 1.3221 R1: 1.3263 R2: 1.3288 R3: 1.333 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The Turkish Lira (via $USDTRY ) has the most significant 5-day correlation with bitcoin prices among emerging market FX, currently at -0.94.Get your market update from @CVecchioFX here: https://t.co/tn48ww6Ttb https://t.co/bcAxDQp44B
  • $GBPUSD Daily Pivot Points: S3: 1.2274 S2: 1.2354 S1: 1.239 R1: 1.2471 R2: 1.2516 R3: 1.2597 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.63% 🇬🇧GBP: 0.56% 🇳🇿NZD: 0.22% 🇦🇺AUD: 0.00% 🇨🇦CAD: -0.03% 🇨🇭CHF: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/5bHRLeCXru
  • $CL_F $USO #OOTT https://t.co/mxxcRdPHcL
  • 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/ciezHCrgwm https://t.co/RjUc2YOLQk
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 0.92% Gold: 0.19% Oil - US Crude: -0.96% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/tNZVRWuqxa
  • $USDJPY Daily Pivot Points: S3: 106.99 S2: 107.49 S1: 107.8 R1: 108.3 R2: 108.49 R3: 108.99 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.87%, while traders in France 40 are at opposite extremes with 81.79%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/oMqXKRmxpn
  • $EURUSD Daily Pivot Points: S3: 1.0847 S2: 1.0936 S1: 1.0969 R1: 1.1058 R2: 1.1115 R3: 1.1204 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
Gold Price Outlook: Metal Pauses at Resistance as Trade Wars Cool

Gold Price Outlook: Metal Pauses at Resistance as Trade Wars Cool

2019-05-15 18:30:00
Peter Hanks, Junior Analyst

Gold Price Outlook:

  • A daily close above $1,300 could see gold use the psychological level for support as the week progresses
  • Technical levels aside, waning risk aversion could weigh on the metal’s price outlook as investors favor higher yielding assets
  • Other retail traders are overwhelming net-long on Gold, find out how to use IG Client Sentiment Data with one of our Live Sentiment Data Walkthroughs

Gold Price Outlook: Metal Pauses at Resistance as Trade Wars Cool

Gold’s price outlook hangs in the balance after a series of trade war developments have removed some of the precious metal’s safe-haven appeal. After disappointing US data, risk-assets initially began Wednesday’s New York session in the red until a series of optimistic trade war comments crossed the news wires. Subsequent sentiment flipped and higher-yielding assets like the DAX 30 and Dow Jones rallied into the green.

Gold Price Chart (XAUUSD): 1 – Hour Time Frame (May 2019) (Chart 1)

gold price chart XAUUSD

Amid all the noise, gold’s initial bid above $1,300 was quickly retraced. Secondarily, the metal’s attempted move above the 23.6% Fib level from lows in December 2015 to the highs in July 2016 was curtailed. A daily close beneath both $1,300 and $1,297 would see each level pose further resistance in upcoming sessions. Beyond that, the 23.6% Fib level from August 2018 to February 2019 will look to resist a more concerted effort higher.

View A Brief History of Trade Wars to read about the precedents set in prior economic conflicts.

As for support, XAUUSD will look to $1,287 – the 61.8% retracement derived from the downtrend which took place from January 2018 to August 2018. Subsequent support may be offered from the ascending trendline from lows in January and the descending trendline from gold’s high in February. The confluence of technical levels is displayed in part by the price indecision of late April and early May.

Gold Price Chart (XAUUSD): Daily Time Frame (January 2019 – May 2019) (Chart 2)

XAUUSD price chart outlook

USDCNH: Why 7.00 is the Spot to Watch in the US-China Trade War

That said, some technical traders view a failed run at the 23.6% Fib level indicative of a trend reversal. Further, if gold’s daily close results in a long-legged doji, which currently exists at the time of this article’s publication, some market participants may expect a bearish follow-through in Thursday trading. Follow @PeterHanksFX on Twitter for updated analysis and technical levels on gold.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: S&P 500 Outlook: ETF Flows Suggest Flight to Currency Market

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

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


News & Analysis at your fingertips.