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. See our updated Privacy Policy here.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTFBxM https://t.co/FbepD4RaFg
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale https://t.co/P6H9sHFVIB
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:https://t.co/3D8s2eIVWv https://t.co/JDGNwKYyOn
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sIauS https://t.co/JIT5it2HAt
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here: https://t.co/g9QvH3L4It https://t.co/Vz98E0Bl9U
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:https://t.co/3hm1g3BHgf https://t.co/MdTQKEBCBx
Gold Price Breakout Eyes Critical Trendline Resistance Ahead of NFP

Gold Price Breakout Eyes Critical Trendline Resistance Ahead of NFP

Justin McQueen, Strategist

Gold Price Analysis and Talking Points:

  • Gold on Course for Best Week Since March 2018
  • NFP Report in Focus
  • Technical Outlook | Key Trendline Resistance Remains Formidable

See our quarterly gold forecast to learn what will drive prices throughout Q2!

Gold on Course for Best Week Since March 2018

Amid the backdrop of raised expectations that the Federal Reserve will provide “insurance” rate cuts to insulate the US economy from adverse external events, gold prices have soared through $1300 to move within touching distance of the 2019 peak. Last week we highlighted that risks were tilted to gold upside on fueling rate cut bets (full story) after Fed Vice Chair Clarida’s statement in which he had seemingly opened the door to a rate cut. Since then, a raft of Fed rate setters had signaled their openness to a easing with Chairman Powell noting that policy could be adjusted in order to sustain the expansion, while Bullard was perhaps the most explicit having stated that a rate cut could be warranted soon.

Gold Price Breakout Eyes Critical Trendline Resistance Ahead of NFP

Alongside this, the trade war backdrop has also provided underlying support for the precious metal. However, in the near term, focus will be on the outcome of the US and Mexican trade discussions this weekend as recent headlines suggest that tariffs on Mexican goods could be delayed thus potentially taking the shine of some of golds recent rally if indeed this was to be the case.

NFP Report in Focus

Today’s focus will lie on the US jobs report, particularly after the weakest ADP reading in 9yrs. Although, to put some context on the ADP report, typically the correlation between that and NFP is relatively weak, while the 3-month average is a rather robust 153k with the 2019 average at 188k. Alongside this, the ISM employment index had been notably firmer, which tends to be more important for NFP. Elsewhere, the wage component remains the most important metric within the report as Fed officials look for inflationary signs.

Technical Outlook | Key Trendline Resistance Remains Formidable

While gold prices have soared, questions can be raised on whether the precious metal has moved too much in such a short space of time. As such, with gold now eying critical resistance in the form of the descending trendline that has held over the past 5yrs, there is a risk of a slight pullback.

GOLD PRICE CHART: Daily Time-Frame (Feb 2013-June 2019)

Gold Price Breakout Eyes Critical Trendline Resistance Ahead of NFP

What You Need to Know About the Gold Market

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