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
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Gold prices are finally showing life in what should be one of the best fundamental environments in recent history.Get your $XAUUSD market update from @CVecchioFX here:https://t.co/HnvUE9TvP8 https://t.co/GuLYbE19VH
  • ECB VP de Guindos: - ECB forecasts inflation to decline next year and remain low - There is still time to decide on the PEPP program's destiny $EUR
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 2.74% Gold: 1.27% Oil - US Crude: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/h3JUhrkoia
  • USD/CAD continues to reverse lower, now trading below the June swing high $USDCAD https://t.co/dl3shF0neT
  • Company earnings bolster FTSE 100 index. Downtrend on UK treasury yields continues. Get your market update from @WVenketas here:https://t.co/b7ALnOgbaO https://t.co/MVR4c4VVTZ
  • https://t.co/Ldf98qDw0P
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.15%, while traders in Wall Street are at opposite extremes with 75.10%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/CeIupH0opI
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.61% Wall Street: 0.61% FTSE 100: -0.04% Germany 30: -0.04% France 40: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/iblONqMY4m
  • EUR/USD continues to push higher on post-FOMC USD weakness, eyeing test of 1.19 $EURUSD https://t.co/yzkh0Cjlj3
  • It's Robinhood ($HOOD) IPO day, and the stock is down from its open. Here's what I had to say about it ahead of time in an interview with @KristenScholer @cheddar https://t.co/kzf5oAvfJC
Gold Prices at Pivotal Support Ahead of the Fed

Gold Prices at Pivotal Support Ahead of the Fed

James Stanley, Senior Strategist

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

In our last article, we looked at the aggressively-bearish move in Gold prices that hit the yellow metal by more than $55 in a little over a week. The driver here was fairly-clear, as we saw expectations for a rate hike at the Federal Reserve’s March meeting shooting-higher after a chorus of Fed-speakers gave a series of hawkish comments that finally convinced markets that rate hikes were coming sooner-rather-than-later. This has produced a considerable hit to Gold prices with a major long-term level of support now coming into-play at the $1,200-area. This is the 38.2% Fibonacci retracement of the ‘big picture’ move in Gold prices, taking the Bretton Woods-fix of $35/oz all the way up to the 2011 high at $1,920.

Gold Prices at Pivotal Support Ahead of the Fed

Chart prepared by James Stanley

With support showing-up around this key level, we may be seeing the rate hike that’s largely-expected to take place later today being priced-in. So, the determinant to that next directional move in Gold prices is likely going to come from how hawkish or dovish the Fed might be with forward-looking rate expectations. Given that the Fed is using today’s meeting to roll-out ‘fan charts,’ which gives the bank a bit more flexibility in how they’re going to communicate those expectations to markets, with a ‘range’ of values being offered as opposed to a rigid, singular number.

The Fibonacci retracement drawn-around the most recent bullish move could be helpful for determining the next directional bias in Gold as we near this pivotal rate decision from the Fed. By taking the low set just after the Fed’s rate hike in December up to the high set in latter-February, and we can get a series of levels to work with. This is shown below with the royal blue Fibonacci retracement, and if price action is able to break-below the 50% marker of this move, bearish positions could be sought with traders attempting to sell ‘lower-high’ resistance. Conversely, on the bullish side of the pair, traders would likely want to let price action break above the prior swing-high, which is at the 38.2% retracement of that most recent bullish move before looking to press that theme.

Gold Prices at Pivotal Support Ahead of the Fed

Chart prepared by James Stanley

--- Written by James Stanley, Strategist 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