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
More View more
Real Time News
  • #Bitcoin Outlook: $BTCUSD Bounce From 40K, Fake-out or Shake-out? -
  • While JPY gets clobbered, CHF decides to turn a blind eye to yields $CHF
  • The surprise 100 basis point cut from the Turkish central bank (to 18%) generated the expected pressure for $USDTRY. That said, I don't think it was the market that decided the momentum should die out at 8.8000 again...
  • surprised that $NQ is holding up so well with what rates are doing. 10 year yield at a 2 month high, $Nasdaq still holding resistance at prior support
  • The S&P 500 has recovered all the ground it lost at the start of the week and the Dollar has slumped post FOMC and PMIs. DailyFX's @JohnKicklighter gives a brief overview of the market for Thursday!
  • The future taper isn't enough to urge the Dollar to a critical bullish break. In turn, $EURUSD has reversed shy of of August's trough and keeps in play an inverse head-and-shoulders pattern with a neckline at 1.19
  • USD/CAD testing short-term moving average support. Traders have cut their long exposure over the week. Get your market update from @nickcawley1 here:
  • In the West, that qualifies as a default action. Let's see how it is treated in the world's second largest economy
  • Some Evergrande offshore bondholders do not expect company to make interest payment by Thursday deadline
Gold Price Running Into a Formidable Zone of Opposition

Gold Price Running Into a Formidable Zone of Opposition

Nick Cawley, Strategist

Gold (XAU/USD) Price, Chart, and Analysis

  • Gold has reclaimed all of the Asia flash crash.
  • A notable area of resistance nears.
  • Big increase in weekly retail traders net-short positions.

The gold flash crash seen in Asia at the start of the week has now been fully retraced, leaving the precious metal just below a prior support level that now acts as resistance. Gold has been under pressure from a stronger US dollar, and higher US Treasury yields, as market thoughts now turn to the timing of taper talks, as the US looks to reduce its bond-buying program. There are growing expectations, fueled by some hawkish Fed talk of late, that Fed chair Jerome Powell may use the Jackson Hole Symposium – ‘Macroeconomic Policy in an Uneven Economy’ (August 26-28) as a springboard to suggest that the US QE program may soon begin to be wound down, with an official timetable announced by the Fed in November. These expectations have pushed the US dollar higher, weighing on the price of gold.

The spot gold price is now nearing $1,764/oz. the 50% Fibonacci retracement level of the mid-March/early-August 2020 rally that peaked at $2,075/oz. Price action around this level in mid-April this year acted as a base for the move to $1,916/oz. while it also acted as support around mid-June. Gold is now pushing into this area of resistance. The precious metal is no longer oversold, according to the CCI indicator, while the three simple moving averages remain in a bearish formation after posting a negative 50-day/200-day ‘death cross’ early last week. Ahead of the weekend, gold may run into a bout of volatility, especially with the closely watched University of Michigan consumer sentiment and inflation expectations readings released later this afternoon.

Keep up to date with all market-moving data releases and events by using the DailyFX Calendar

Gold (XAU/USD) Daily Price Chart (November 2020 – August 12, 2021)

Gold Price Running Into a Formidable Zone of Opposition

Retail trader data show 71.79% of traders are net-long with the ratio of traders long to short at 2.55 to 1. The number of traders net-long is 1.36% lower than yesterday and 8.25% lower from last week, while the number of traders net-short is 0.80% higher than yesterday and 76.90% higher from last week.

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.

What is your view on Gold – 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.