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
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
Oil - US Crude
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
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Thin liquidity can concentrate volatility and nowhere is that more evident than with Dogecoin. $DOGEUSD was down as much as 38% today. Watch for heightened bouts of volatility amid quiet risk trends in the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/04/17/Dollar-Outlook-Ties-Into-Key-Data-Rate-Forecasts-and-Even-Dogecoins-Rally-.html https://t.co/JO7O7zUKe9
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/Vv3jZNbLWg
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkzWwW https://t.co/9j004hyzUZ
  • Learning how to trade does not have to feel foreign. Hone your skills and build your confidence with free DailyFX guides today! https://t.co/lnxaQOsgid https://t.co/7myL4vGnt8
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yxE0OmLIP0
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUd00T https://t.co/iSrjZTeWwf
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/WeLInepZiD https://t.co/7B0KI8HehW
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM73cHA https://t.co/vGW5BygTXU
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/xngExEdFdu https://t.co/kqpJ6oGXgt
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/F4dXbUzU3o https://t.co/G0ZWWVtSrZ
Gold Price Outlook: Edging Higher as USD Falls, Traders Eye Powell Speech

Gold Price Outlook: Edging Higher as USD Falls, Traders Eye Powell Speech

Margaret Yang, CFA, Strategist

GOLD PRICE OUTLOOK:

  • Gold prices coiled up slightly as the US Dollar erased gains, Treasury yields fell during APAC hours
  • Traders await Jerome Powell’s speech at an IMF seminar for his take on global growth
  • The world’s largest gold ETF suffered outflow, with holdings falling to the lowest since May 2020
Gold Forecast
Gold Forecast
Recommended by Margaret Yang, CFA
Download our fresh Q2 Gold Forecast
Get My Guide

Gold prices erased early losses and traded modestly higher during Thursday’s APAC midday session after falling 0.41% a day ago. Selling pressure on the precious metal alleviated as the DXY US Dollar index eased gains and the 10-year Treasury yield fell despite improved risk appetite.

Last night’s FOMC meeting minutes underscored the Fed’s dovish stance in the wake of transitory inflation pressure. The central bank committed to maintain the current accommodative policy until the economy shows “substantial further progress” towards its full employment and inflation targets before considering tapering. The Fed intended to communicate well in advance of the time when progress could be judged “substantial enough to warrant a change in the pace of purchases”.

Asia-Pacific investors digested the Fed’s dovish rhetoric and embraced a ‘risk-on’ session, with equity indices marching higher in most of the regional markets. A reduced appetite for safety sent the US Dollar lower, buoying gold and platinum prices. Looking ahead, traders are waiting for a speech from the Fed Chair Jerome Powell on Thursday at a virtual IMF seminar, in which he will likely share his views on global recovery and the monetary policy outlook. The US weekly initial jobless claims data will also be closely eyed.

In the medium term, the prospects of a stronger economic recovery, alongside President Joe Biden’s fresh $2.25 trillion infrastructure spending plan, may continue to encourage investors to shift their capital into risk assets such as equities for yield and growth. Non-yielding precious metals appear lackluster against this backdrop, especially if real yields continue to rise.

Gold Prices vs. DXY US Dollar Index

Gold Price Outlook: Edging Higher as USD Falls, Traders Eye Powell Speech

Source: Bloomberg, DailyFX

The world’s largest gold ETF - SPDR Gold Trust (GLD) – saw continuous net capital outflows over the past few weeks. The number of GLD shares outstanding fell to 353.0 million on April 6th from a recent high of 407.1 million observed on January 4th, marking 54.1 million shares of decline. Gold prices have fallen by 11.8% during the same period. Gold prices and the number of outstanding GLD shares have exhibited a strong positive correlation of 0.87 over the past 12 months (chart below).

Gold Price vs. GLD ETF Shares Outstanding – 12 Months

Gold Price Outlook: Edging Higher as USD Falls, Traders Eye Powell Speech

Source: Bloomberg, DailyFX

Gold Price Technical Analysis

Gold prices are testing an immediate resistance level at US$ 1,744 – the 23.6% Fibonacci retracement. A successful attempt would probably intensify near term buying pressure and carve a path for price to challenge the next key resistance at US$ 1,785 (28.3% Fibonacci retracement). A failed attempt however, would lead to further consolidation within a range-bound condition between US$ 1,676 and 1,744. The primary trend remains bearish-biased, as suggested by the downward-sloped 50- and 100-day SMA lines, although the 20-day SMA seems to be edging up.The MACD indicator is trending higher beneath the neutral midpoint, suggesting that selling pressure is fading and momentum is tilted towards the upside.

Gold PriceDaily Chart

Gold Price Outlook: Edging Higher as USD Falls, Traders Eye Powell Speech
Gold Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 4% -16% -1%
Weekly 3% 3% 3%
What does it mean for price action?
Get My Guide

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

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

DISCLOSURES