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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
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
Wall Street
More View more
Real Time News
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here:
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here:
  • (Weekly Outlook) Australian Dollar Outlook: AUD/USD Divergence With Wall Street Risks Continuing #AUD $AUDUSD #Fed #Stocks
  • The US Dollar steadied against most ASEAN currencies this past week. Key support levels remain in play looking at USD/SGD, USD/THB and USD/PHP. USD/IDR may rise with a new trendline. Get your market update from @ddubrovskyFX here:
  • EUR/USD has been looking toppy since late May as bearish technical signals played out. But, rising Euro short bets from retail traders hint that the currency may hold its footing. Get your market update from @ddubrovskyFX here:
  • The Japanese Yen may rise as retail investors increase their long exposure in pairs like USD/JPY and EUR/JPY. Will these pairs turn lower? What are key levels to watch for? Find out from @ddubrovskyFX here:
  • Natural gas spot prices have been on the rise, recapturing a key trendline, following the EIA’s Short-Term Energy Outlook. Where can prices head from here? Find out from @FxWestwater here:
Gold Prices Fall as USD and Yields Creep Higher Before Inflation Data

Gold Prices Fall as USD and Yields Creep Higher Before Inflation Data

Margaret Yang, CFA, Strategist


  • Gold prices pulled back from a three-month high as investors mulled inflation fears
  • A stronger US Dollar and higher yields weighed on precious metal prices
  • Gold may see a near-term pullback as prices hit the ceiling of an “Ascending Channel”

Gold prices pulled back modestly during Wednesday’s Asia-Pacific trade, falling from a three-month high. A rising US Dollar and higher yields exerted downward pressure on the precious metal ahead of a key US inflation gauge today. Silver was down over 1% and platinum dropped nearly 0.8%. Risk sentiment tilted to the cautious side as inflation fears pulled Asia-Pacific equities broadly lower.

The recent rise in base metal, energy and agriculture prices has led to higher inflation expectations, which have boosted the appeal of gold as a perceived inflation hedge. From the March 30th to yesterday’s closing, gold prices gained almost 10%. A weakening US Dollar also contributed to the rise of commodities in general. The DXY US Dollar index has fallen 3.36% since the end of March.

This week however, reflation optimism boosted nominal and real yields, with the 10-year US Treasury yield climbing for a fourth day. The real yield, as represented by the 10-year inflation-indexed security, rose 2 bp to -0.91% from -0.93% seen on Monday. Higher real yields are negative for gold, as the opportunity cost of holding the non-interest-bearing metal increases (chart below).

Several Fed officials said on Tuesday that current conditions are not warranting a discussion about tapering even though the US economy is faring well. Their dovish stance failed to lift market confidence however and equities suffered broad-based selling across the globe.

Forex and equity traders are eyeing Wednesday’s US headline inflation and core readings for a reality check. The market has already set high expectations for the (YoY) increase in the price levels, with the headline rate figure to hit a 10-year high of 3.6%. If the actual readingsdeviate too far from the expectations, bullion prices could face another wave of volatility.

Gold Prices vs. US 10-Year Inflation-Index Security

Gold Prices Fall as USD and Yields Creep Higher Before Inflation Data

Source: Bloomberg, DailyFX

Technically, gold remains in an “Ascending Channel” as highlighted on the chart below. An upward channel is formed by consecutive higher highs and higher lows and can be easily recognizable as a trending market. The ceiling of the channel serves as an immediate resistance, and a pullback was observed after prices hit it. An immediate support level can be found at 1,800 – a psychological level.

The 20-day SMA line is about to cross above the 100-day line, potentially forming a “Golden Cross” on the daily chart. A “Golden Cross” is a medium-term bullish indicator and may pave the way for further upside potential. The MACD indicator is trending higher above the neutral midpoint, suggesting that bullish momentum is prevailing.

Gold PriceDaily Chart

Gold Prices Fall as USD and Yields Creep Higher Before Inflation Data

--- Written by Margaret Yang, Strategist for

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.