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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/LjEjTexrCg https://t.co/lELbFbVAAO
  • Market Snapshot $USD and $JPY drifting lower against their major counterparts $AUDUSD and $EURUSD pushing to fresh session-highs #Gold and #crudeoil prices moving higher #ASX200 and #SP500 futures drifting to session-lows
  • United States records over 86,000 new cases of Covid-19, setting a new daily record - BBG $USD $SPX $DJIA
  • Chinese Science and Technology Minister Wang: Self-reliance doesn't contradict opening up China hopes to both learn from the world and share its innovations - BBG $USDCNH
  • The US Dollar may struggle finding momentum as markets remain in limbo until the presidential election. ASEAN currencies eye US GDP data, earnings, Brexit talks and rising Covid-19 cases. Get your market update from @ddubrovskyFX here:https://t.co/l705RWumj5 https://t.co/8kdIspgEX9
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.04% Silver: 0.98% Gold: 0.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/PbrqdKC7GQ
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.32% 🇨🇦CAD: 0.21% 🇳🇿NZD: 0.17% 🇪🇺EUR: 0.11% 🇨🇭CHF: 0.08% 🇬🇧GBP: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/dEyqQN6pie
  • Heads Up:🇸🇬 Unemployment Rate Prel (Q3) due at 02:30 GMT (15min) Previous: 2.8% https://www.dailyfx.com/economic-calendar#2020-10-30
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.20%, while traders in NZD/USD are at opposite extremes with 66.67%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ft1Cn9C08R
  • 🚨Euro Area GDP is right around the corner. 🚨 Toward the end of Q3, many growth metrics had already begun to wane. So what will this print mean for the markets? Watch more - https://t.co/qjMZEE7u4E
Gold Price Testing Support as US Dollar Strength Trumps Coronavirus Fears For Now

Gold Price Testing Support as US Dollar Strength Trumps Coronavirus Fears For Now

2020-02-04 10:30:00
Nick Cawley, Strategist
Share:

Gold Price, News, Analysis and Chart

  • Gold consolidating near short-term support zone.
  • Chinese coronavirus death toll now exceeds 420.

Gold (XAU/USD) Nudges Off its Recent Highs but Chinese Virus Fears Remain

Gold has moved lower this week after printing a short-term high of $1,592/oz. over the weekend session and currently traded around $1,568/oz. as renewed US dollar strength dampens the recent rally. The greenback’s rally has been helped by recent better-than-expected US data releases and is now within striking distance of levels last seen two months ago. The US dollar basket (DXY) positive outlook is now supported by all three moving averages in the short-term, and this evening’s US State of the Nation speech and Friday’s US Labor Report (NFPs) will be key for the greenback’s short-term direction.

The Chinese coronavirus outbreak shows no sign of abating with over 20,000 confirmed cases of the flu in and 420 fatalities reported in China. China’s leader Xi Jinping overnight said that the outbreak had shown up deficiencies and shortfalls in the country’s handling of the crisis and said that the country must improve its ability ‘in handling urgent and dangerous tasks’.

With the coronavirus expected to dominate headlines in the short-term, any weakening of the US dollar could see gold push higher again and test the January 11 near seven-year high above $1,611.5/oz. Gold is currently trading on the 20-day moving average and there are various supportive price points and a cluster of recent trades down to $1,546/oz. The last two days ranges have broken the series of short-term higher lows and need to be watched for further evidence of current market sentiment.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Nick Cawley
Traits of Successful Traders
Get My Guide

Gold Daily Price Chart (May 2019 – February 4, 2020)

gold price showing effect of us dollar and coronavirus
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Nick Cawley
Improve your trading with IG Client Sentiment Data
Get My Guide

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 – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES