News & Analysis at your fingertips.

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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
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
  • Sentiment-sensitive crude #oil prices may have a volatile week ahead of the highly-anticipated #Elections2020 and the #FOMC rate decision. Get your #commodities update from @ZabelinDimitri here:
  • Why is JPY called a safe haven? What are some factors in its favor this quarter? Get your free forecast here:
  • The market’s preferred ‘fear indicator’ shows a persistent uncertainty around the near future. What can our current conditions and history tell us what to expect from the #VIX through the final two months of the year?
  • #Stock market performance is considered an important predictor of the economic outlook. What else can it be used to project? #Elections2020
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here:
  • A #Euro reversal off technical downtrend resistance now risks a larger correction in price. Here are the levels that matter on the $EURUSD weekly chart. Get your #currencies update from @MBForex here:
  • We are days away from the US Presidential election and the markets are caught in the vortex. A contested outcome would raise serious volatility for the markets whereas a decisive outcome seems to support bullish $SPX and Dollar views from the market rank.
  • The future implications of the #Elections2020 may influence $AUDUSD following the #RBA and #Fed rate decisions as Congress struggles to pass another round of fiscal stimulus. Get your #currencies update from @DavidJSong here:
  • Gold prices declined in the aftermath of bearish technical cues, but a key zone of support was reinforced. $XAUUSD volatility risk is elevated ahead of the #Elections2020. Get your #metals update from @ddubrovskyFX here:
  • USD awakens, placing GBP/USD on the backfoot, while EUR/GBP cracks 0.90. Get your #currencies update from @JMcQueenFX here:
Gold Price Plummets, Seeks Technical Support Near May Lows

Gold Price Plummets, Seeks Technical Support Near May Lows

2019-05-17 19:00:00
Peter Hanks, Analyst

Gold Price Forecast:

  • A failed run at the 23.6% Fibonacci level and the $1,300 psychological leveled played a part in driving gold substantially lower in Thursday and Friday trading
  • Simultaneously, a series of encouraging trade-war developments crossed the news wires and likely weighed on demand for safety
  • Still, 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 Plummets, Seeks Technical Support Near May Lows

After a failed drive higher in Wednesday trading, gold prices have been battered as the week draws to a close. As forecasted, a series of technical resistance levels combined with the $1,300 psychological level worked in tandem to rebuke a continuation higher. With gold trading to its lowest price since May 3, and on pace for its largest intraday loss since April 16, the metal now grasps for support.

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

gold price chart technical levels

Gold price intraday percentage change in blue

To that end, the safe-haven asset has some options to work with. First, the 38.2% retracement at $1,275 – counterpart to the 23.6% that stalled Wednesday and Thursday’s attempted moves higher – offers immediate support. A close above $1,275 would be an encouraging sign for gold bulls heading into next week. Similarly, an ascending trendline from the August 2018 lows will provide further buoyancy. Although gold prices probed beneath the trendline in early May, a close above in Friday trading would meaningfully bolster the support offered in the $1,275 to $1,278 range.

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

However, should selling continue and those levels are rendered obsolete, subsequent support will be offered by the 50% Fib level at $1,263 and prior to that, a modicum of support may be offered at May lows around $1,268. While there is no lack of support, a break beneath the descending trendline originating from February 20, may seek to reassert its dominance over the technical landscape.

Gold Price Chart (XAUUSD): 4 - Hour Time Frame (February 2019 – May 2019) (Chart 2)

gold price chart technical support

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

Since February, the trendline has guided gold prices lower, rebuking multiple attempts higher - until gold’s rally on Monday. The surge corresponded with the largest S&P 500 gap lower since 2009, which was seemingly a sufficient catalyst to drive prices above the trendline. But as the week progressed and trade-war risks have calmed, equities have rebounded, and safe-haven demand has receded.

At the same time, the US Dollar has found its footing – surmounting a key trendline of its own - adding to downward pressure on gold. If the fundamental landscape remains stable next week, expect gold to flounder between the different technical levels as traders seek to determine which garners the most respect. In the meantime, follow @PeterHanksFX on Twitter for updated analysis and technical levels on gold.

--Written by Peter Hanks, Junior Analyst for

Contact and follow Peter on Twitter @PeterHanksFX

Read more: EURGBP Extends Winning Streak as Brexit Uncertainty Weighs

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.

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