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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bullish
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
Gold
Bearish
GBP/USD
Mixed
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
Bearish
More View more
Real Time News
  • Gold ($XAUUSD) is making a bid to break back above a frequented pivot level around 1765. This despite risk trends being up (against its haven status) and the Dollar holding steady (pricing factor) https://t.co/pmbnoxYCXf
  • USD/CAD: A convincing rejection of the 1.26 handle, which also coincided with the 50% fib of the 2021 range. Get your $USDCAD technical analysis from @JMcQueenFX here:https://t.co/VubZkkShN0 https://t.co/zhAZJXtoqm
  • Hey traders! Are we witnessing a clear stretch for S&P500 and Nasdaq? Find out from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/SMh1QQZ7lT
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.46% 🇦🇺AUD: 0.38% 🇯🇵JPY: 0.26% 🇬🇧GBP: 0.05% 🇪🇺EUR: -0.04% 🇨🇦CAD: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/LaMYeDZc9M
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: 0.86% FTSE 100: 0.85% Wall Street: 0.77% France 40: 0.46% Germany 30: 0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/oTS1NQDC68
  • Gold back towards key resistance (1760-65) that has capped rallies over the past two months - US yields at session lows providing the latest push higher https://t.co/u35ePHQXOb
  • Gold back towards key resistance (1760-65) that has capped rallies over the past two months - US yields at session lows providing the latest push higher
  • The US Dollar has weakened further today following strong retail sales and jobless claims prints and a fall in longer-term US yields. The $DXY hit an intraday low around 91.50, its lowest point in nearly a month. $USD https://t.co/ySs86SDZpb
  • #Silver is strengthening today, rising from 25.50 to currently trade above 25.85. The precious metal is now trading at a three week high. $XAG $SLV https://t.co/N00VYEmMlf
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 1.85% Gold: 1.56% Oil - US Crude: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/0XcUzDWhqz
Gold Price Wavers as USD Jumps Post-FOMC Minutes

Gold Price Wavers as USD Jumps Post-FOMC Minutes

Rich Dvorak, Analyst

GOLD PRICE EXTENDS LOWER, US DOLLAR REBOUNDS AFTER JULY 2020 FOMC MINUTES

  • XAU/USD price action spikes lower following the latest FOMC minutes release
  • Gold under pressure possibly owing to little appetite for yield curve control
  • Large-scale asset purchases officially part of the conventional monetary policy toolkit

Gold prices are sliding fast as traders react to July 2020 FOMC minutes that just crossed the wires. Fed officials discussed the potential use of yield curve control as a tool for conducting monetary policy, but details showed little appetite for this possible approach. A sharp rebound staged by the US Dollar in response to the FOMC minutes is likely exacerbating renewed XAU/USD weakness.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Rich Dvorak
Trading Forex News: The Strategy
Get My Guide

GOLD PRICE CHART: 1-HOUR TIME FRAME (26 JUL TO 19 AUG 2020)

Gold price chart XAU USD FOMC Minutes July 2020 Reaction

The FOMC minutes noted that while yield curve caps, or targets, could be used as an effective tool, it was also stated that potential requirement for “very sizable amounts of government debt under certain circumstances could pose risks to the independence to the central bank.” Gold prices reacted negatively to the news seeing that yield curve control likely would have served as a bullish fundamental driver due to a fixed lid on Treasury rates. FOMC minutes also suggested that the Fed is growing less optimistic on a robust economic recovery during the second half of the year. Perhaps this explains the upbeat reaction by the US Dollar given its posturing as a top safe-haven currency.

Gold Forecast
Gold Forecast
Recommended by Rich Dvorak
Get Your Free Gold Forecast
Get My Guide

That said, the FOMC minutes also noted how large-scale asset purchases “were effective in the wake of the previous recession” and thus becomes part of the monetary policy toolkit. Looking ahead, language hinted at a preference of forward-guidance. This brings the upcoming Jackson Hole Symposium front and center as a potential platform for the Federal Reserve to outline the path forward as the economy recovers from the coronavirus pandemic.

Keep Reading: Gold Price Forecast Bright & Volatile as USD, Real Yields Swing

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

DISCLOSURES