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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Notice

BoE Chief Econimist (Hawk) is to Step Down From BoE After June Meeting

Real Time News
  • When is Kodak going to get into the SPAC game? Bitcoin mining pivot in 2018 and Vaccine production pivot in July 2020. Any day now...
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.19% Gold: 0.74% Oil - US Crude: 0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/QNPEEysdEK
  • The Dow Jones, Nasdaq 100 and S&P 500 will look to the arrival of earnings season for influence. Get your #equities market update from @PeterHanksFX here:https://t.co/96vOGDYq2K https://t.co/xUE3PxGz9B
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.41%, while traders in France 40 are at opposite extremes with 75.87%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/akuL5mmcvW
  • Pfizer states it can deliver 10% more vaccine doses to the US by the end of May $PFE $SPX $NDX $RUT
  • Had the pleasure of sitting down with @GuyAdami and @RiskReversal for another episode of The Macro Setup to discuss $GLD $BTC and $SPX ahead of earnings season and the Coinbase IPO Watch here - https://t.co/6usEdkA5om
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.41% Germany 30: 0.06% Wall Street: 0.00% FTSE 100: 0.00% US 500: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0qT3sH7l3i
  • #Bitcoin breaks out to fresh all-time highs as investors cast an eye to the long awaited Coinbase IPO #BTC $BTCUSD https://t.co/qwxlzkGa9C
  • NY Fed Treasury purchase schedule remains unchanged - BBG
  • Silver posting a strong session, now up 2.3% on the day. In recent trade, silver has struggled to break above the 50-day EMA $XAG $USD https://t.co/BetnXeKLj3
Gold Prices Find Fibonacci Support Ahead of FOMC Minutes

Gold Prices Find Fibonacci Support Ahead of FOMC Minutes

James Stanley, Senior Strategist

Talking Points:

- Gold technical strategy: Long-term mixed, Intermediate-term bearish, short-term bearish.

- FOMC Minutes are released later today at 2PM ET, and Friday brings Non-Farm Payrolls. The U.S. Dollar will likely remain volatile around these key events.

- IG Client Sentiment is currently showing +4.99 traders long for every one short, and given retail sentiments contrarian nature, this is bearish.

- If you’re looking for trading ideas, check out our Trading Guides. If you’re looking for shorter-term ideas or trading education, please check out our DailyFX Webinars.

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

On Monday, we looked at the aggressive bearish run that’s taking place in Gold prices. Throughout Monday, that bearish move continued to develop, and prices ran down-below the $1,220-handle Gold dropped by the most in seven months – since the night of the U.S. Presidential election.

But mid-day on Monday, Gold prices found support at a key zone around $1,219. This is the 38.2% Fibonacci retracement of the July-December 2016 major move, and the 50% marker of that same move helped to set resistance last week before the selling in Gold really heated up. This level had also helped to set the lows in Gold prices in early-May; and that’s right around the time that James Comey was fired, and Gold prices rallied all the way to his testimony in front of the Senate a month later. Around that testimony – Gold prices resisted at the April high to produce a double top formation – and since then Gold prices have been heavily offered through a litany of support levels.

Gold Daily Chart with Fibonacci Retracement Applied – Support Highlighted

Gold Prices Find Fibonacci Support Ahead of FOMC Minutes

Chart prepared by James Stanley

Is the Bearish Run Complete?

There is no evidence yet to suggest as such. There have been no clear shifts on a fundamental basis, nor have there been any technical events that would denote the end of the bearish trend. This would allow traders to move-forward with a bearish bias for Gold prices. IG Client Sentiment is currently showing +4.99-to-1, which is bearish given retail sentiment’s contrarian nature.

The matter of complication at the moment is the issue of re-entry. The remainder of this week brings some rather pertinent U.S. data with the release of FOMC minutes later this afternoon followed by Non-Farm Payrolls on Friday, and since Gold prices ran into support around $1,219, sellers have been unable to re-take control of price action. Add this to the fact that we had a fairly out-sized spill to begin the week, and we may need more of a pullback before short-side re-entry becomes attractive again.

On the hourly chart below, we’re looking at four potential resistance areas that can be used in the effort of bearish continuation. If price action breaks-above the swing-high around $1,259, the bearish approach will no longer be as attractive, and this can be an area to investigate for stop placement should the zone around the ‘r4’ level become tested.

Gold Prices Find Fibonacci Support Ahead of FOMC Minutes

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