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
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.11% Gold: -0.43% Silver: -0.87% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/AOIbh73rp3
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.68%, while traders in France 40 are at opposite extremes with 78.98%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/yK7jFjbjiP
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/zw2CgDfc4p
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.56% US 500: 0.46% FTSE 100: 0.06% Germany 30: 0.03% France 40: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/GZ4XjZmV4f
  • $Ether is having a morning, up ~11% from the earlier lows big zone of resistance lurking overhead $ETH decent definition along this fibo retracement https://t.co/Pt7MejiGdH https://t.co/6fPzl667se
  • Crude oil attempting to muscle its way higher and invalidate the short-term bearish trend #OOTT $USO $CL_F https://t.co/TBjLR5SjET
  • As the BoE are expected to maintain current policy settings with the bank rate at 0.1% and APF at £895bln. The focus will be on the accompanying statement and projections. Get your market update from @JMcQueenFX here:https://t.co/AOvhRkoOFO https://t.co/prSL9VPFqV
  • $EURUSD too clean for comfort, esp with #NFP on the horizon https://t.co/W6MjdfHWUW
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.70%, while traders in France 40 are at opposite extremes with 79.47%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Su4dGQMLg4
  • The primary point of worry for the FOMC is labor and tomorrow brings the July NFP report out of the United States. Get your market update from @JStanleyFX here:https://t.co/fur0ydizSn https://t.co/dcKE8AQ7iC
Gold Price (XAUUSD) Forecast - Shackled By Bearish Engulfing Candle, US Real Yields

Gold Price (XAUUSD) Forecast - Shackled By Bearish Engulfing Candle, US Real Yields

Nick Cawley, Strategist

Gold (XAU/USD) Analysis, Price and Chart

  • Gold under further downside pressure.
  • Monday’s wipeout candle will hold back any bullish intent.
  • Client sentiment is bearish.
Advertisement

Gold remains under pressure despite a small pick-up from Monday’s low print at $1,850/oz. The precious metal shed in excess of $100/oz. at one point yesterday as risk markets grabbed a huge bid on positive Covid-19 vaccine news. Traditional safe-haven assets, including gold, fell victim to the rush for risk, with the precious metal wiping out six-weeks’ worth of gains in one session. The US dollar also lost some of its safe-haven allure, but rising US Treasury yields and narrowing US real yields, underpinned the greenback and weighed on gold.

The closely followed 10-year US Treasury hit a yield of 0.94% Monday, a fresh eight-month high, as investors dropped safe-haven assets. The yield on the benchmark 10-year was also under pressure from dealers and investors pushing the price down/yield up ahead of this week’s sizeable 3-, 10- and 30-year US bond auctions. Yesterday $54 billion 3-year notes were priced, today investors will be offered $41 billion 10-year notes, while on Thursday $27 billion 30-year bonds will be sold. Rising US Treasury yields are also forcing US real yields to narrow/become less negative, a further bearish set-up for gold.

Gold Price (XAUUSD) Forecast - Shackled By Bearish Engulfing Candle, US Real Yields

The daily gold chart shows a large bearish engulfing candle made on Monday, wiping out the best part of six-weeks’ worth of gains. This candlestick will crimp further upside and may cause further falls in the precious metal. The downside should find initial support around yesterday’s low at $1,850/oz. which lines up with the double low print at the end of September. Below here, the 38.2% Fibonacci retracement at $1,836/oz. before the 200-day simple moving average at $1,819/oz. Initial resistance around $1,900 - $1,905/oz. off the big figure and the 20- and 5-day sma.

Gold Daily Price Chart (March – November 10, 2020)

Gold Price (XAUUSD) Forecast - Shackled By Bearish Engulfing Candle, US Real Yields

IG retail trader datashow 87.93% of traders are net-long with the ratio of traders long to short at 7.29 to 1, a bearish contrarian signal. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Gold-bearish contrarian trading bias.

Gold Price (XAUUSD) Forecast - Shackled By Bearish Engulfing Candle, US Real Yields

What is your view on Gold – are you 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