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
  • 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/f6mraHu6zv
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjKWitK https://t.co/JMsJPQlQ3j
  • 🇳🇱 Consumer Confidence (SEP) Actual: -5 Previous: -6 https://www.dailyfx.com/economic-calendar#2021-09-22
  • A rough start to the week with the cryptocurrency market a sea of red with losses on either side of -10% a common sight.Get your market update from @nickcawley1 here:https://t.co/AUfuM9t7yw https://t.co/lU6HS7fHwr
  • RT @FxWestwater: Gold, Copper Forecast: XAU Eyes FOMC, Evergrande News Sends Copper Flying Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/09/22/Gold-Copper-Forecast-XAU-Eyes-FOMC-Evergrande-News-Sends-Copper-Flying.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/x2sC…
  • Heads Up:🇳🇱 Consumer Confidence (SEP) due at 04:30 GMT (15min) Previous: -6 https://www.dailyfx.com/economic-calendar#2021-09-22
  • PBoC liquidity injection + reports that Evergrande will make its next onshore bond payment ($35.88-million on 23 Sept) is bolstering risk appetite here. Yet, there is still no word on the $83.53-million offshore bond payment also due Thursday. Over to you now, Jpow & Co. https://t.co/3an0K2d5T1
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/ewdevfzq9I
  • Bank of Japan: - Outlook highly uncertain amid Covid - Asset purchase outline unchanged - Cuts assessment of production - exports, production impacted by supply side constraints - BBG
  • Heads Up:🇯🇵 BoJ Interest Rate Decision due at 03:00 GMT (15min) Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-09-22
Gold Price Forecast: XAU/USD Bulls Struggle to Keep Bullish Trendline

Gold Price Forecast: XAU/USD Bulls Struggle to Keep Bullish Trendline

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • XAU/USD is holding to its bullish trendline but key resistance lies ahead
  • Gold has lacked momentum so far in September

Gold (XAU/USD) is starting to look a little feverish once again despite managing to pull higher at the end of last week. The pullback over the last two sessions is not yet overextended and is still likely to offer new buyers a better chance to get in, but there isn’t much wiggle room left before the outlook starts to look slightly bearish.

So far the bullish trend since XAU/USD reversed higher back in August is mostly intact, with small reversals along the way allowing for another leg higher. The question now is whether this is another one of those momentum building reversals or if there is more to it, especially given how strong the pullback has been over the last two days compared to the other times.

Advertisement

XAU/USD Daily chart

Gold Price Forecast: XAU/USD Bulls Struggle to Keep Bullish Trendline

The mood in the market has been pretty upbeat so far which isn’t helping the demand for safe havens and, as the Fed gears up for a potential taper towards the end of the year, the central bank’s inaction is no longer as strong of an appeal for those looking for a greater return from their investments in non-yielding assets like gold.

Friday’s push higher on weaker than expected NFP data showed once again that moves in the price of gold are mostly conditioned by the US Dollar at this point, and with there still being room for a stronger currency as yields recover their pre-pandemic levels, the outlook for gold on the medium term isn’t looking too great.

This is also true if the pandemic gets out of hand once again, with new cases rising rapidly worldwide, as the US Dollar can outperform no matter the state of the US economy as it will pick up safe haven demand, outshining gold as protective trade.

XAU/USD Monthly chart

Gold Price Forecast: XAU/USD Bulls Struggle to Keep Bullish Trendline

The move so far in the 5 first trading days of September has been pretty much null, with a non-existent body and small tails showing a lack of momentum. The August candlestick shaped out to be a clear sign of indecision, with a long downside tail showing the bearish meltdown being reversed to finish the month completely flat, which makes it harder to build up stronger moves in September. So far XAU/USD has found strong resistance at the 38.2% Fibonacci retracement from the August 2020 highs, an area that has stopped bulls in the last three months running. To the downside, the 50% Fibonacci (1,763) is likely the best area of support going forward.

Fibonacci Confluence on FX Pairs

Learn more about the stock market basics here or download our free trading guides.

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES