Never miss a story from James Stanley

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to James Stanley

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points:

- Gold previously drove above $1,300 as USD-weakness showed-up after Non-Farm Payrolls earlier in the month.

- That theme of Gold strength came unraveled this week as USD-strength showed-up following last week’s CPI report.

- Want to see the DailyFX Q4 Forecast on Gold and the U.S. Dollar? Click here for full access.

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

In our last article, we looked at Gold prices slipping back-below the $1,300 psychological level after bullish drive showed-up on the heels of the October NFP report. That print saw an abysmal number of -33k, and this led to a continuation of the USD-weakness that had become so commonplace in the first three quarters of the year. In short order, prices ran from a low just above $1,260 to a high above $1,305; but as we had written on Monday, if buyers were unable to hold support above the key figure of $1,300, a bearish retracement was likely around-the-corner. That’s what showed for most of this week as prices moved down to find support around the Fibonacci level at $1,278.76.

Gold Daily: Current Support at 61.8% Retracement of July-December, 2016 Bearish Move

Gold Prices Fall Back to Fibonacci Support as USD Re-Approaches Highs

Chart prepared by James Stanley

In our previous article, we looked at down-side targets at $1,296, $1,289, $1,284 and then $1,277.83; all of which have cleared. We had also mentioned that for bullish approaches, traders would likely want some element of a higher-low to show in order to confirm the potential for that theme’s attractiveness. That hasn’t happened yet, and this leaves Gold prices in a rather unworkable spot as we approach the weekend.

For next week, traders can look for a break of near-term support around $1,278.76 to open the door to for bearish continuation. Down-side targets can be cast towards prior points of swing-support at: $1,275, $1,267.50, $1,261, $1,254.06 followed by another run at the $1,250 psychological level. The prior swing-high around $1,291 obviates the bearish stance, and opens the door to the possibility of top-side setups as a re-test of $1,300 would appear likely.

Gold Prices Fall Back to Fibonacci Support as USD Re-Approaches Highs

Chart prepared by James Stanley

--- Written by James Stanley, Strategist for

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

Contact and follow James on Twitter: @JStanleyFX