Gold falls back into the symmetrical triangle on mixed Fed sentiment


  • Fed officials offer mixed signals int the blackout period and sends the dollar higher.
  • Gold drops below the 1430 downside key support level again.

Gold prices on Friday gave back earned ground from the prior session following a dialled back in the markets with respect to Federal Reserve rate cut expectations. Spot prices fell from a high of $1,452.95 to a low of $1,420.35, ending the New York session at $1,425.35 and -1.49%.  

The greenback stablised following The Wall Street Journal's report that Fed officials, based on recent public statements and interviews, were actually signalled they were ready to cut rates by a just a quarter-percentage point and not by 50 basis points. The Dollar was 0.3% higher at 97.104 in the DXY by the precious metal's close and was closing the New York session back on he 97 handle, + 0.41%. The 10-year Treasury note was yielding 2.0494%.  

Meanwhile, gold futures were also ending lower for the session as the dollar strengthened, although they ended higher of the week after logging their first intraday climb above $1,450 an ounce in six years. August gold trading dropped by $1.40, or 0.1%, to settle at $1,426.70 an ounce, after touching an intraday high of $1,454.40. 

From here, markets will be watching economic data next week as Fed speakers go into the blackout ahead of the July 31st FOMC meeting. Meanwhile, the Dollar is also subject to the trade wars with President Trump trying to jawbone the USD lower since day one. "Yet the combination of late-cycle stimulus and a global trade wars blunted his efforts. Now, with those economic diminishing the mere threat of intervention is enough to knee-cap the USD. In turn, intervention seems unlikely, especially if f natural forces already want to pull the USD lower," analysts at TD Securities explained. 

Gold levels

Technically, a symmetrical triangle has been taking shape and today's drop has sent the price back into the ranges and below the 1430 downside key support level again. If the price break below 1420/25, bears will look for a run below the 1400 psychological level. The 23.6% Fibo of the latest swing lows and highs are located at 1398. Below here, we are looking down the barrel at $1,373/76 zone which meets the 19th June spike correction lows and the 38.2% Fibo of the same swing ranges.

XAU/USD

Overview
Today last price 1425.65
Today Daily Change -20.55
Today Daily Change % -1.42
Today daily open 1446.2
 
Trends
Daily SMA20 1411.67
Daily SMA50 1351.48
Daily SMA100 1321.63
Daily SMA200 1292.45
Levels
Previous Daily High 1448.08
Previous Daily Low 1414.95
Previous Weekly High 1427.05
Previous Weekly Low 1386.34
Previous Monthly High 1438.66
Previous Monthly Low 1306.18
Daily Fibonacci 38.2% 1435.43
Daily Fibonacci 61.8% 1427.61
Daily Pivot Point S1 1424.74
Daily Pivot Point S2 1403.28
Daily Pivot Point S3 1391.6
Daily Pivot Point R1 1457.87
Daily Pivot Point R2 1469.55
Daily Pivot Point R3 1491.01

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD surges above 1.1100 as Trump announces steps against China

EUR/USD is trading above 1.1100, up on the day. President Trump said he orders companies to search Chinese imports for drugs. Earlier he criticized Powell's lack of action. 

EUR/USD News

GBP/USD jumps above 1.2250 on USD weakness

GBP/USD is trading close to the monthly highs above 1.2250 as the US dollar falls following Powell's hint of cutting rates and Trump's angry response. 

GBP/USD News

USD/JPY plummets to ten-day lows below 106 as Trump goes berserk on Twitter

The USD/JPY came under strong selling pressure in the last hour and erased nearly 100 pips as US President Donald Trump's latest rant on Twitter forced investors to seek refuge and ramped up the demand for safe-haven JPY. 

USD/JPY News

Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •