Gold Price News and Forecast: XAU/USD comes under pressure and drops to lows around $1,550/oz

Another Repo Market Liquidity Injection for Gold Bulls to Cheer

Last Thursday, the New York Fed added more than $80 billion in fresh temporary liquidity to the financial markets. Move over folks, nothing to see here – but what does it mean for gold prices?

Repo Crisis Is Not Over

Last week on Thursday, the New York Fed added $83.1 billion in temporary liquidity to financial markets. And banks’ demand for liquidity flared up again on Tuesday. If you haven’t heard of it, don’t worry – almost no one did. After all, journalism is about covering important stories… with a pillow!

The Fed not only injected some fresh liquidity, but also noted that it “may keep adding temporary money to markets for longer than policy makers had expected in September,” at least through April. So much for the normalization of monetary policy…

Please look at the chart below. It shows the Fed’s balance sheet in 2019. Although the US central bank has managed to shrink its assets a bit compared to the peak of $4.516 trillion from early 2015, the quantitative tightening has ended quickly. Read more...


Gold comes under pressure and drops to lows around $1,550/oz

The improved sentiment in the risk-associated space is now motivating the ounce troy of the precious metal to slip back to the $1,550 area, or daily lows.

Gold weighed down by USD, risk

The yellow metal is extending the choppy performance so far this week amidst the better mood in the riskier assets, particularly following the recent signing of the ‘Phase 1’ trade deal between China and the US.

Also adding to the ongoing pullback, the greenback has regained some buying interest on the back of above-estimates results from Retail Sales, the Philly index and Initial Claims, which have somewhat reversed the pessimism following December’s inflation figures (released earlier in the week). Read more...

Gold Violates Bearish Channel - Is It Going Higher to 1,561?

On Thursday, the precious metal gold prices are trading bullish around 1,556 area amid weakness in the U.S. Dollar. The dollar pushed up the foreign market for dollar-denominated gold. Lower demand for risky assets and a dive in U.S. Treasury yields also boosted the market.

Gold's demand despite the faded uncertainty as China pledged not to force U.S. companies for technology transfer in exchange for access to its market. Both countries assured not to devalue their currency to benefit their exporters. From 2022 to 21, China will buy at least $200 billion more of U.S. products & services than it did in 2017. The deal, however, leaves in place 25% tariffs on $250B goods of Chinese industrial products used by U.S. manufacturers. Read more...

Gold XAU/USD chart

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trims intraday gains returns to mid-1.17

The EUR/USD pair retreated after flirting with the 1.1800 figure, as the market mood somehow turned sour. Focus on the next US fiscal relief package, coronavirus, and economic progress.


GBP/USD approaches 1.3000 once again

GBP/USD is easing towards weekly lows as dollar bulls are giving it another try. Brexit concerns and UK lockdowns in the eye of the storm.


XAU/USD bull-bear tug-of-war extends around $1975

XAU/USD sidelined heading into the European session. Downside limited by dollar weakness, coronavirus concerns. Focus remains on the USD dynamics and the United States/China updates.

Gold News

What you need to know about trading in August

The generally received wisdom is that summer is a quiet month for trading. Traders are on holiday and markets quieten down. That’s the expectation among many. However, the reality is that August can be one of the most volatile trading months of the year.

Read more

WTI: Bulls await API data to attack $41.00

WTI struggles to extend recovery moves from $40.74 beyond $41.00. Virus woes join OPEC output increase to combat drop in Russian oil production. US Factory Orders, API inventories will be the key.

Oil News