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
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • BoE Governor Bailey: - Digital innovations in payments are here to stay - Haven't yet landed on the appropriate design for a lasting digital currency - Doesn't think cryptocurrencies are lasting yet #BoE $GBP
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.16% 🇯🇵JPY: -0.02% 🇬🇧GBP: -0.11% 🇦🇺AUD: -0.16% 🇪🇺EUR: -0.24% 🇨🇭CHF: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/kRlx2rPiiC
  • Mexican Peso Price Forecast: USD/MXN Above 20.00 as Bulls Break Out https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/01/25/Mexican-Peso-Price-Forecast-USD-MXN-USDMXN-Above-20-as-bulls-break-out.html $MXN $USDMXN https://t.co/oZBXOEtdwr
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.23% FTSE 100: 0.23% France 40: 0.22% US 500: -0.11% Wall Street: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/9AqTqeGiHX
  • $USDCAD rose to an intraday high near 1.2780, its highest level since last Monday, before turning downward to trade slightly lower. $USD $CAD https://t.co/ogVbZXNc09
  • Hey traders! Get your Monday market update from @DailyFX Chief Strategist @JohnKicklighter 👇
  • US Indices pared their earlier gains and have all fallen into the red as trading session advances. DOW -0.87% NDX -0.08% SPX -0.46% RUT -1.03% $DOW $QQQ $SPY $IWM
  • The price of gold is stuck in a small range in early turnover as traders ready themselves for a busy week of potentially market-moving data releases and events. Get your $XAUUSD market update from @nickcawley1 here:https://t.co/cB1KKaIJfi https://t.co/6U7onHpkii
  • ECB President Lagarde: - Hope is still that 2021 is year of recovery - Euro-area growth in Q4 was negative - Recovery has been delayed but not derailed #ECB $EUR
  • #Gold fell back to around $1,850 after testing and rejecting its upper range for the last two weeks as it climbed to a morning high around $1,867. $XAU $GLD https://t.co/wPjAgcu3Vq
Gold (XAUUSD) Price Rebound May be Short-Lived as Resistance Lies Ahead

Gold (XAUUSD) Price Rebound May be Short-Lived as Resistance Lies Ahead

Nick Cawley, Strategist

Gold (XAU/USD) Analysis, Price and Chart

  • Gold bounces off Fibonacci support.
  • Fibonacci and moving average resistance lies ahead.
Advertisement

Gold continues its short-term bounce back after the heavy falls over the last couple of weeks, boosted by a weaker US dollar. The greenback touched lows last seen in late April 2018 in early trade before turning marginally higher. Tuesday’s weaker-than-expected US ISM print – 57.5 compared to forecasts of 58.0 and a prior reading of 59.3 in October – had knocked the greenback lower, especially after the ISM report showed the employment reading falling to 48.4 compared to forecasts of 51.0 and a prior reading of 53.2. Expectations continue to build that the Fed will deliver further stimulus at the December 15/16 meeting.

How to Trade Gold: Top Gold Trading Strategies and Tips

The daily gold chart shows how the 50% Fibonacci retracement level at $1,763.5/oz. stemmed the recent sell-off and provided a springboard for this week’s bounce back. It remains to be seen if this level will hold a second attempt, especially as the market has moved out of oversold territory. Ahead, a cluster of resistance levels comprising $1,836.9/oz (38.2% Fib), the 200-day simple moving average at $1,841/oz. and the 20-day sma at $1,844.5/oz. These three may prove difficult foes for gold bulls.

To learn more about moving averages, check out DailyFX Education

Gold Daily Price Chart (March – December 2, 2020)

Gold (XAUUSD) Price Rebound May be Short-Lived as Resistance Lies Ahead
Gold BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 3% 6% 4%
Weekly -6% -3% -6%
What does it mean for price action?
Get My Guide

IG retail trader datashow 81.46% of traders are net-long with the ratio of traders long to short at 4.39 to 1.We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall.Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Gold price trend may soon reverse higher despite the fact traders remain net-long.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Nick Cawley
Trading Forex News: The Strategy
Get My Guide

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