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
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
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • 🇬🇧 Mortgage Lending (AUG) Actual: £3.1B Expected: £3.65B Previous: £2.7B https://www.dailyfx.com/economic-calendar#2020-09-29
  • 🇬🇧 Mortgage Approvals (AUG) Actual: 84.7K Expected: 71K Previous: 66.3K https://www.dailyfx.com/economic-calendar#2020-09-29
  • 🇬🇧 BoE Consumer Credit (AUG) Actual: £0.3B Expected: £1.45B Previous: £1.1B https://www.dailyfx.com/economic-calendar#2020-09-29
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT for insight on London #FX and #CFD trading. Register here: https://t.co/AoM3UvLtcF https://t.co/D6FwaPaRWe
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/1Lmw2HhA2p
  • Heads Up:🇬🇧 Mortgage Lending (AUG) due at 08:30 GMT (15min) Expected: £3.65B Previous: £2.7B https://www.dailyfx.com/economic-calendar#2020-09-29
  • Heads Up:🇬🇧 Mortgage Approvals (AUG) due at 08:30 GMT (15min) Expected: 71K Previous: 66.3K https://www.dailyfx.com/economic-calendar#2020-09-29
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.81%, while traders in US 500 are at opposite extremes with 64.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/SPC8zHzmsL
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/UTWxbnNz7M https://t.co/03nsLIFxVq
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Gold: 0.03% Silver: -0.06% Oil - US Crude: -0.65% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/bZOgkJeQnh
Gold Price Eyes Bullish Breakout as USD Drops Ahead of FOMC

Gold Price Eyes Bullish Breakout as USD Drops Ahead of FOMC

2020-09-14 15:30:00
Rich Dvorak, Analyst
Share:

GOLD PRICE FORECAST: PRECIOUS METALS HINGE ON SEPTEMBER FED MEETING

  • Gold price edges higher to start the week with the Fed meeting on deck
  • XAU/USD gaining ground as the US Dollar weakens and yields retreat
  • Precious metals like gold could fall if FOMC officials talk down markets

Gold is trading on its front foot as precious metals aim higher headed into the Federal Reserve meeting scheduled this week. The latest advance set forth by gold price action looks to tee up the shiny commodity for a potential topside breakout from its recent consolidation.

Introduction to Forex News Trading
Introduction to Forex News Trading
Recommended by Rich Dvorak
Introduction to Forex News Trading
Get My Guide

FOMC officials underscoring their dovish stance and commitment to keeping financial conditions accommodative likely stands to recharge the gold price rally. Commentary on the fresh implementation of average inflation targeting could bolster gold prices as well.

GOLD PRICE CHART WITH US DOLLAR INDEX & TEN-YEAR TREASURY YIELD OVERLAID: DAILY TIME FRAME (DEC 2019 TO SEP 2020)

Gold price chart forecast

Chart created by @RichDvorakFX with TradingView

That said, if the Fed decides to talk down markets, perhaps by emphasizing downside risks faced by the economy and growing disconnect between Wall Street and Main street, gold might face further headwinds. This is seeing that a pessimistic Fed has potential to ignite risk aversion and steer XAU/USD price action lower as the US Dollar catches bid alongside rising investor demand for safe-haven currencies.

Starts in:
Live now:
Sep 29
( 09:09 GMT )
Recommended by Rich Dvorak
London FX & CFD Trading
Register for webinar
Join now
Webinar has ended

GOLD PRICE CHART: DAILY TIME FRAME (29 APR TO 14 SEP 2020)

Gold price chart forecast xau usd september fed meeting

Chart created by @RichDvorakFX with TradingView

The path of least resistance nevertheless appears tilted to the upside. Technical support around the $1,920/oz price level looks plentiful and shows potential to keep a floor under gold going forward. This area of support is also highlighted by the positively sloped 50-day moving average.

Gold BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 1% -4% 0%
Weekly 9% -4% 7%
What does it mean for price action?
Get My Guide

Topping the August 18 close near $2,010 per ounce might encourage gold bulls to set their sights on fresh record highs. On the other hand, a breakdown of the symmetrical triangle consolidation pattern, perhaps identified by a close below the $1,920-price level, could suggest more turbulence ahead for gold.

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

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES