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
  • 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
  • The week saw a slightly more dovish than expected RBA minutes increase the importance of the latest labour market report, which showed an uptick in the unemployment rate to 5.3%. Where is $AUDUSD heading? Find out from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/gmGjlGBvjv
Gold Price, Silver Price Shakeout Has Not Changed Fundamental Background

Gold Price, Silver Price Shakeout Has Not Changed Fundamental Background

2019-09-06 08:20:00
Nick Cawley, Analyst
Share:

Gold (XAU) Price, Silver (XAG) Price Analysis and Charts

  • Gold down but not out, ahead of NFP release
  • Silver slides 6.5% lower as sellers dominate price action.

Q3 2019 Gold Forecast and Top Trading Opportunities

Gold Looking to Regain Upside Momentum

The recent sharp sell-off in the commodity space sent gold back to levels lows seen two weeks ago as market risk sentiment turned positive. US ADP jobs data was much stronger than expected Thursday while recent commentary around the US-China trade deal also gave risk assets a boost. Ahead today, the latest US Labor report – estimates around 160k before Fed chair Powell speaks later in the session. This will be the last Fed speak before the blackout period ahead of the September 18 FOMC meeting.

While gold may be currently under pressure, it would not take too much to push prices higher again as the overall market backdrop – US-China trade fears, recession worries, lower US/global interest rates – remains the same. A look at the daily chart shows the CCI indicator selling off sharply and back at levels last seen in mid-May, as the market moves towards oversold territory, while there remains strong support between $1492/oz. and $1494/oz. In the short-term, gold will probably range trade before the US NFP report, but the fundamental background remains positive.

Live US NFP Data Coverage from 12:15 GMT - Webinar

Gold Price Daily Chart (February – September 6, 2019)

Gold Price, Silver Price Shakeout Has Not Changed Fundamental Background

IG Client Sentiment data show that 66.1% of retail traders are net-long of gold, a bearish contrarian indicator. However, recent daily and weekly positional changes give us a stronger bearish contrarian trading bias.

How to Trade Gold: Top Gold Trading Strategies and Tips

Silver Nears Supportive Zone

Silver’s sharp sell-off over the last 24-hours is bringing a supportive zone between $17.79/oz. and $18.05/oz. into view. This area is likely to remain supportive and if it holds will provide a springboard for a move higher. As with gold, the positive backdrop has not changed and any sell-off back towards $18.00/oz. should be monitored carefully, with $17.52/oz. providing the next level of support.

The gold/silver ratio is currently 82.00.

Silver Daily Price Chart (February – September 6, 2019)

Gold Price, Silver Price Shakeout Has Not Changed Fundamental Background

How to Trade Silver: Top Trading Strategies

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on Gold and Silver – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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

DISCLOSURES

News & Analysis at your fingertips.