All Articles Tagged - gold

Asian Session – Yen firmer after BoJ disappoints with changes to its QE program

Posted on December 18, 2015 at 8:13 am GMT

The Bank of Japan took markets by surprise by expanding the range of assets it will purchase under its quantitative easing program. At its latest monetary policy meeting, the Bank decided to set aside 300 billion yen from its existing QE fund to purchase exchange-traded funds issued by firms with the aim of encouraging companies to invest more and increase wages. The Bank of Japan also decided to increase the maturity of Japanese government bonds that it purchases from 10 [..]

Technical Analysis – Gold falling in descending channel

Posted on December 17, 2015 at 8:31 am GMT

Gold has been moving in a descending trend channel formation since March 2014, (on the weekly chart) and making lower highs and lower lows as prices bounce off the upper and lower channels lines. The bias remains bearish, especially after prices fell below the key psychological level of 1200 since June of this year. A low of 1046.29 was reached on December 3. This is the lowest level since 2010. Technical indicators are giving bearish signals. The tenkan-sen is below [..]

Post-thanksgiving trade session sees volatility

Posted on November 27, 2015 at 2:23 pm GMT

Friday’s trading session following the Thanksgiving Thursday holiday is traditionally a quiet affair as many US traders remain away from their desks the day following the holiday. The trading day itself is shortened (half-day) and there are no US data releases. This results in a lack of liquidity and thin trading conditions as this is a day when big real money investors tend not to execute their orders. When these conditions occur, two things can happen. Either trading itself becomes [..]

Dollar strength, China concerns push metals to multi-year lows as oil tests $40

Posted on November 23, 2015 at 3:54 pm GMT

The commodities rout continues to haunt metal prices such as copper, iron ore, nickel and zinc, which have all plummeted to multi-year lows in recent days. The strong dollar is one of the reasons commodity prices continue to come under pressure as the two have traditionally shared an inverse relationship (see graph). This is because the majority of commodities are priced in dollars so when the value of the dollar goes up, it will require fewer dollars to buy commodities. Another [..]

US dollar pushes euro and gold near multi-month lows

Posted on November 17, 2015 at 3:20 pm GMT

The US dollar has been moving higher this week as it pushed both the euro and gold near multi-month lows. Specifically the euro dipped to its lowest since April below 1.0650 and very near its 12 ½ year low of 1.0461 registered back in March this year. With respect to gold, the precious metal fell to its lowest in nearly 4 months at 1077, after falling to 1074 the previous week; eyeing the almost 6-year low of 1071 dollars an [..]

Positioning may be a problem for dollar bulls for remainder of year; oil eyes August low

Posted on November 13, 2015 at 2:03 pm GMT

Euro – dollar has been under intense pressure in recent weeks after it was unveiled that the Federal Reserve was planning to raise interest rates during its December meeting, while the European Central Bank was planning to add to its stimulus measures in the same month. Specifically, the euro came tumbling down from its 1.1494 peak (not far from its high for the year) in mid-October to below the 1.07 level on November 10th. During this period, Fed Governors have [..]

Technical Analysis – Gold strongly bearish despite upside attempts

Posted on November 10, 2015 at 1:51 pm GMT

Gold was attempting to make a second day of gains on Tuesday but was struggling to stay in positive territory. It hit 3-month low of 1085.35 last Friday and has now retraced more than 61.8% of the July 20-October 15 rally. RSI and the stochastics have reversed into negative territory in the hourly charts and remain strongly bearish in the daily charts, indicating on-going downside momentum in the near-term. However, some further upside momentum is possible given that the stochastics [..]

European Session – Dollar weak ahead of Fed, oil and gold rally

Posted on October 28, 2015 at 4:26 pm GMT

The US dollar remained weak against most major currencies due to low demand ahead of the FOMC policy announcement due later in the day. The Federal Reserve is expected to keep interest rates unchanged near zero percent. A recent spate of weak US economic data has led to most economists forecasting that the US central bank would hold fire at this meeting and keep rates where they have been since 2008. The dollar was steady against the yen, trading above [..]

European Session – Gold and oil tumble while dollar rises after China cuts rates again

Posted on October 23, 2015 at 2:20 pm GMT

The dollar rose above 121 yen after China’s central bank cut interest rates today in an effort to cushion a deepening economic slowdown in its economy. The news of further stimulus in the world’s second largest economy could increase the likelihood of a December Fed rate hike. This caused the dollar to rise against most if its major counterparts. The PBOC (People’s Bank of China) reduced its benchmark one-year lending rate by 25 basis points to 4.35% from 4.6% effective [..]

Asian Session – Dollar extends gains after strong data; Euro down on ECB easing expectations

Posted on October 16, 2015 at 7:18 am GMT

The dollar extended yesterdays’ rally at the start of today’s Asian trading but fell back in late Asian session. Stronger-than-expected inflation and jobless claims data on Thursday boosted the dollar, calming fears about the strength of the US economy and raising the prospect of the Fed hiking interest rates this year. Adding to the dollar’s bullish sentiment were comments by Cleveland Fed President Loretta Mester. Speaking at an event in New York, Mester said she believes the US economy can [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

gold

XM Live Chat