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.



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
Oil - US Crude
Wall Street
More View more
Real Time News
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @PaulRobinsonFX here:
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here:
  • BoE’s Tenreyro says evidence on negative rates are “encouraging” Meanwhile, STOXX Europe Banks Index resides at all time lows
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:
  • Anti-fiat #gold prices suffered the worst week since August as the US Dollar gained ground. Will losses extend? All eyes turn to fiscal stimulus hopes and non-farm payrolls data. Get your #metals update from @ddubrovskyFX here:
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:
  • What is seasonal change in volatility. Are we going through one right now? Find out:
  • The US Dollar will be bracing for a cascade of political risks including the first presidential debate, ongoing stimulus talks, the Supreme Court vacancy against the backdrop of key employment data. Get your #currencies update from @ZabelinDimitri here:
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out:
Gold Price Outlook Bearish as XAU/USD Nervously Eyes Chart Support

Gold Price Outlook Bearish as XAU/USD Nervously Eyes Chart Support

2019-07-26 22:00:00
Daniel Dubrovsky, Analyst

Gold Technical Forecast: Bearish

  • Gold prices trade cautiously lower as selloff may accelerate
  • Bearish signals undermine the dominant XAU/USD uptrend
  • IG Client Sentiment also offers gold bearish contrarian bias

Find out what the #1 mistake that traders make is and how you can fix it!

Gold prices traded cautiously lower this past week, making for the worst performance over the course of 5 days since the first week of July. While progress was very gradual, there were a couple of notable technical developments. Together, these threaten the precious metal’s rise going back to August 2018.

It began with a Bearish Engulfing on July 19, a candlestick that carries reversal implications given technical confirmation. One could look at gold’s decline as of late to cement this argument. This also occurred alongside negative RSI divergence, a sign of fading momentum to the upside which can at times precede a turn lower or result in consolidation.

However, I am also closely watching the break under a near-term rising support line going back to June on the first chart below. From here, further closes to the downside underpin these bearish technical signals. Together, these may pave the way for a test of 1392 – former high from March 2014 - before targeting the July 1 low at 1381. Beyond that is a range between 1357 and 1366.

On the other hand, should XAU/USD see buying pressure in the week ahead and take out immediate resistance at 1422 – the 23.6% Fibonacci extension – that may pave the way for a retest of the August 2013 high at 1433. Clearing that opens the door to refacing the 38.2% extension at 1447 which previously tamed the dominant uptrend.

Gold Daily Chart

Gold Price Chart

Chart Created in TradingView

IG Client Sentiment: Gold

Meanwhile, the latest readings in IG Client Sentiment are offering a gold-bearish contrarian trading bias. About 71.8% of traders are net-long, 1.8% higher than yesterday and 17.7% from last week. Net-short positioning on the other hand is 3.4% smaller from yesterday and 19.4% lower than compared to the previous week.

To learn more about how to use sentiment in your own trading strategy, join me each week on Wednesday’s at 00:00 GMT as I uncover what IG Client Sentiment has to say about the prevailing trends in financial markets and follow me on Twitter here @ddubrovskyFX for timely updates!

Spot Gold Client Positioning

Spot Gold Client Positioning

FX Trading Resources

--- Written by Daniel Dubrovsky,Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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