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
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • The US Dollar is pulling back from what’s become a strong outing in the month of September. Get your $USD technical analysis from @JStanleyFX here:https://t.co/hOvSiIDFLT https://t.co/d0SEnfJT0s
  • webinar starting right now - looking at 1. themes for q3 close 2. debates starting tonight, what might market ramifications be? 3. heavy week of data out of the us - $USD in the spotlight https://www.dailyfx.com/webinars/455809179 https://t.co/tZxa4c2zVl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.20%, while traders in US 500 are at opposite extremes with 62.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9tCHS7o18f
  • Heads Up:🇺🇸 Fed Williams Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-29
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 1.93% Gold: 0.62% Oil - US Crude: -4.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/674URQqbej
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.49% 🇪🇺EUR: 0.41% 🇳🇿NZD: 0.37% 🇬🇧GBP: 0.05% 🇯🇵JPY: -0.17% 🇨🇦CAD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/NLmATP58eY
  • Trader confidence is relatively buoyant in the currency markets, benefiting FX pairs such as EUR/USD, GBP/USD and AUD/USD at the expense of the safe-haven US Dollar. Get your market sentiment update from @MartinSEssex here: https://t.co/ir7hXNfxec https://t.co/2IwbcrkrM5
  • Join @JStanleyFX 's #webinar at 1:00 PM ET/5:00 PM GMT for his weekly update on trading price action. Register here: https://t.co/ZCcMdyaTsB https://t.co/xn5x2AG5vI
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.16% Germany 30: -0.17% France 40: -0.17% US 500: -0.63% Wall Street: -0.81% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/z1qnxoAWz7
  • Reports of German Chancellor Merkel saying EU recovery funds will be increasingly delayed came just as $EURUSD was struggling with former support (H&S neckline) as new resistance. When fundamentals and technicals converge... https://t.co/BDvM9DXBW6
Gold Prices Pose a Bullish Run, but Set a Lower-High

Gold Prices Pose a Bullish Run, but Set a Lower-High

2016-09-07 18:38:00
James Stanley, Strategist
Share:

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

  • Gold Technical Strategy: Longer-term up-trend another bump higher after Friday’s NFP, Tuesday’s ISM.
  • As U.S. rate hike bets shuttered lower after disappointing data, Gold prices caught an aggressive bid-higher.
  • If you’re looking for trading ideas, check out our Trading Guides. And if you want something more short-term in nature, check out our SSI indicator.

In our last article, we looked at Gold prices trending lower after the chorus of Fed speakers had helped to prod U.S. rate expectations higher around the Jackson Hole Economic Symposium. So while the bullish structure and outlook were still very much alive for Gold, the risk of a deeper retracement made the prospect of bullish positions rather daunting; especially given the concerted effort from various members of the Fed to help ramp those rate-hike expectations higher.

But as we saw on June 3rd and again on July 29th, those expectations for hakwish moves from the Federal Reserve can quickly be offset by disappointing U.S. data that could, potentially, mean that markets are waiting even longer for that next rate hike from the Fed. This is generally negative for the US dollar as rate-hike bets go out of the window; and, in-turn, a positive for Gold.

This has been somewhat of the context of Gold prices this year: The bullish top-side moves have been fast and violent as U.S. rate hike expectations go out-of-the-window; followed by grind that could last for months as markets await more information on what may elicit that next move from the Fed. This can be a dangerous type of environment to trade in and, in-turn, traders should adapt by becoming more prudent and even more aggressive with risk management.

The complication with current price action is the fact that prices are sitting so near prior levels of resistance that have also happened to come-in at lower-highs. The July high was set at $1,375.04, and in early August, Gold prices tried to break above but faced four days of selling that capped the top-side run. Another attempt to eclipse that batch of resistance later in the month fell flat. This most recent top-side run has seen sellers come-in eveen ahead of those lows, so while the past four days have been extremely bullish in Gold, this batch of resistance for the next $30 above price action could make bullish continuation a distant propsect with current structure.

To confirm the prospect of continued bullishness, traders would want to see price action finally able to eclipse these prior highs starting with the swing-high at $1,357, followed by the August highs at around $1,367.

Gold Prices Pose a Bullish Run, but Set a Lower-High

Created with Marketscope/Trading Station II; prepared by James Stanley

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES