Gold hit a 1-month high against the greenback during yesterday's risk-off session. But given gold's strength is broad-based, we suspect its corrective low could be in.  It’s constructive to see that gold’s breakout was broad-based and not just limited to the USD. Having created a gold basket by taking a simple average of gold versus FX majors, we note that the retracement from the 2019 highs was relatively shallow (which is a sign of strength) and yesterday’s breakout was the most bullish day for the gold basket since October. And as noted in Monday’s COT report, gold was the only metal to see an increase of net-long exposure last week, among the metals we track. From here, we’d prefer to seek bullish setups around support zones and anticipate for it to break back above $1300 and head for the 2019 highs.

 

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD ends the day with losses in the 1.1070 area

The shared currency suffered once again from dismal local data, with EU inflation falling into negative ground in July. Dollar up amid a better market mood, but recovery fragile.

EUR/USD News

GBP/USD: On the back foot around 1.2130 amid Brexit pessimism

GBP/USD clings to 10-day EMA after fresh signs of no-deal Brexit. The UK PM writes a letter to the EU showing alternative arrangements to Irish backstop ahead of Germany/France visit.

GBP/USD News

USD/JPY: holding on to modest gains

Japanese exports to China declined by 9.3% YoY in July. USD/JPY consolidating a few pis below a critical Fibonacci resistance.

USD/JPY News

Bullish levels to watch after Binance announces Venus vs. Facebook's Libra

Cryptocurrencies have been advancing once again, with Bitcoin topping $10,500, Ethereum clawing its way back above $200, and Ripple extending its gains.

Read more

Spot gold ending over 1% lower on the day, traders await Fed's Powell

On a less risk-off market, spot gold ended on Wall Street lower by -1.19%  around $1,495 having travelled between a high of $1,513.26 and a low of $1,493.39.

Gold News

Majors

Cryptocurrencies

Signatures