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.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • OPEC reportedly moves up oil production meeting to June 4 #OOTT
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.69%, while traders in US 500 are at opposite extremes with 75.44%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/uuUtwe3YrJ
  • Technical Trade Levels: #Dollar, $EURUSD, $USDCAD, $AUDUSD, #Gold, #SPX and more! (Webinar Archive) - https://t.co/3UevjO8Lil
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 2.04% Gold: 0.55% Oil - US Crude: -1.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/5jVWooiTee
  • GBP/USD IG Client Sentiment: Our data shows traders are now net-short GBP/USD for the first time since May 06, 2020 when GBP/USD traded near 1.23. A contrarian view of crowd sentiment points to GBP/USD strength. https://www.dailyfx.com/sentiment https://t.co/wyWpKN83H2
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.79% 🇨🇦CAD: 1.33% 🇳🇿NZD: 1.31% 🇪🇺EUR: 0.20% 🇯🇵JPY: 0.19% 🇨🇭CHF: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/q2qAPkPXZi
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.29% Wall Street: 0.27% Germany 30: 0.08% FTSE 100: -0.00% France 40: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vHF9F2qb4Z
  • Happy Monday traders! What does the new month bring? Are we looking at positive sentiment but not much momentum❔ What are the market highlights heading into New York open? Find out from @DailyFX Chief Strategist, @JohnKicklighter 👇 https://t.co/xaHZXjZdZr
  • US Treasury Secretary Steven Mnuchin to hold call with G-7 finance ministers on Wednesday per his public schedule $DXY
  • Overlay that with google search terms for “protest” and “riots” and you see a similar uptick. Last time we saw a surge in these search terms was back in August 2019 and we saw a lot of volatility ensue shortly after. https://t.co/ZXAkgRWfAB
Gold Prices Go on a Wild Ride: Ending Back Where They Started

Gold Prices Go on a Wild Ride: Ending Back Where They Started

2016-11-09 18:06:00
James Stanley, Strategist
Share:

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

Talking Points:

  • Gold Technical Strategy: Longer-term bullish > $1,200; intermediate-term unclear, short-term aggressively volatile.
  • Gold prices initially strengthened on risk aversion as it became obvious that Donald Trump was going to win the U.S. Presidential election; but after a move-higher of more than $63, normalcy was restored and price action moved right back towards pre-election result levels.
  • If you’re looking for trading ideas, check out our Trading Guides.

In our last article, we took a cautious look at Gold prices attempting to string together a reversal of the early-October drive lower. As we noted, Gold prices throughout 2016 have faced pressure as the Federal Reserve has talked up near-term rate hike plans, and given the continued persistence towards a possible hike in December of this year, the possibility for continued pressure remained.

Since then, Gold prices have been on a wild ride. Last week as the US Dollar was weakening, Gold prices popped higher to find resistance at a zone of old support around the $1,307-1,309 level. After the Dollar gapped higher to open the week, Gold prices began falling and going into last night’s elections – it appeared as though this would continue. Markets were largely expecting a win for Hillary Clinton, and as it became more obvious that Mr. Trump was going to fare better than most projections predicted, the Greenback began to sell-off and Gold prices popped-higher, again. This led to a ramp of more than $65 in the five hours after election results began coming in.

But around midnight Eastern Time, selling in the Dollar began to slow and resistance in Gold prices began to show. In the 13 hours following that resistance-inflection, almost the entirety of that burst-higher has been faded out of markets. Gold prices have come right back to around where they started, giving a long-legged Doji on the daily chart.

Gold Prices Go on a Wild Ride: Ending Back Where They Started

Chart prepared by James Stanley

Moving forward, traders are likely going to want to wait to get a cleaner directional cue on the U.S. Dollar. While it might seem simple to prognosticate that prior trends will return with the Dollar moving higher based on Fed hawkishness – we’ve just had a potentially game-changing factor take place within the U.S. economy, and this could impact the stance of the Federal Reserve in the near-future.

Levels of importance for near-term price action can be seen at $1,310 (prior support/resistance zone), $1,342 (prior swing high and a Fibonacci level) as ‘big picture resistance,’ and the $1,250 low (recent price action swing low, and Brexit ‘panic low’).

--- 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

News & Analysis at your fingertips.