|Day's range||1,215.30 - 1,223.80|
Gold prices eased for a sixth straight session on Friday, hovering near a one-year low hit in the previous session, as the dollar traded close to a one-year high. Spot gold was down 0.3 percent at $1,218.72 an ounce at 0352 GMT. In the previous session, it fell to its weakest since early July last year at $1,211.08 an ounce.
Gold prices tumbled but closed off the lows of the session following news that Donald Trump said he hoped the Federal Reserve would not raise interest rates. Initially the yellow metal was on the defensive as stronger than expected jobless claims and a robust Philly Fed survey buoyed the greenback generating headwinds for gold prices. The trend remains downward with target support near the July 2017 lows at 1,204. Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices. The RSI (relative strength index) is printing a reading of 25, below the oversold trigger level of 30 which could foreshadow a correction.
Investing.com - The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. increased by 46 billion cubic feet in the week ended July 13, compared to forecasts for a build of 58 billion.
Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to yesterday’s close at 25161. Today’s session begins with the Dow up 14 days from the last main bottom. This makes it vulnerable to a potentially bearish closing price reversal top. This chart pattern is taking place shortly before the cash market opening. If confirmed, it could lead to the start of a 2 to 3 day correction.
The dollar stayed strong but stocks wobbled and metal markets buckled badly on Thursday, as signs that China was resorting to credit-fuelled stimulus again helped drive its currency to a one-year low. Copper and nickel were both down over 2 percent on London's metal exchange, while zinc was down more than 3 percent and lead shed 2.5 percent.
Investing.com - Copper and gold prices fell to the lowest levels in a year on Thursday amid a wider selloff in metals fueled by the stronger dollar and building trade tensions.
Based on the early price action and the current price at 1.1593, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1609. Watch the price action and read the order flow at 1.1609 all session. Trader reaction to this angle will tell us if the selling is getting stronger, or if aggressive buyers are coming in to take profits and stop the price slide.
Gold prices have declined ~5.0% YTD (year-to-date) after rising ~13.0% in 2017. Gold is hitting lows despite factors that favor its safe-haven status. Despite the escalation of trade war fears and political tensions in the European Union, gold prices have been trending lower.
Investing.com – Oil prices fell on Thursday after data from the Energy Information Administration (EIA) showed an unexpected build in U.S. crude stockpiles amid a surge in imports.
Investing.com - Gold prices dropped on Thursday as the dollar remained near a three-week high. U.S. Federal Reserve Chairman Jerome Powell’s comments this week implied increasing interest rates and continued to put pressure on the precious metal prices.
Investing.com – Gold prices were flat Wednesday, as a retreat in the dollar from highs supported metal prices despite renewed focus on U.S.-China trade tensions.
Gold prices rebounded from session lows following the softer than expected U.S. housing starts data which knocked down the dollar and paved the way for a rebound in the yellow metal. Gold prices formed a doji day with a long tail, which is generally a sign of indecision, but the rebound shows the rejection of lower prices. Target support is seen near the July 2017 lows at 1,204. Resistance is seen near the 10-day moving average at 1,245. Momentum remains negative as the MACD line recently generated a crossover sell signal and the MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.
Investing.com – West Texas Intermediate oil remained lower in North American trade on Wednesday after data showed that oil supplies in the U.S. registered a surprise inventory build and U.S. production reached record levels. But gasoline inventories registered a much larger-than-expected draw and distillate stockpiles unexpectedly declined.
The reaction by bearish traders in the gold market to Powell’s testimony indicates that they are happy with the economy and the Fed’s “gradual” pace of interest rate hikes. The charts indicate that resistance is the old tops at $1228.20 and $1230.70. On the downside, the next target is the February 2017 bottom at $1217.20. This price is the trigger point for a steep sell-off with $1158.40 the next major downside target.
Investing.com – Gold Prices were slightly lower on Wednesday and hovered near a one-year low as the dollar strengthened following Federal Reserve Chairman Jerome Powell’s comments on Tuesday that reinforced views the central bank is on track to gradually raise interest rates.
Based on Tuesday’s close at $67.16, the direction of the September WTI crude oil market on Wednesday is likely to be determined by trader reaction to the main Fibonacci level at $66.82.
Natural gas markets initially tried to rally during the day on Tuesday, reaching towards the $2.78 level, an area that has been supported in the past, so it’s not a huge surprise that its resistance now. I believe that natural gas markets are ready to extend the lower levels.
The US dollar rallied during most of the day on Tuesday, reaching towards the ¥112.50 level, an area that of course has attracted attention in the past. I suspect that this point we are churning, perhaps trying to build up the necessary momentum to continue the move higher.
The British pound fell during the trading session on Tuesday, due to suggestions that perhaps the UK was going to leave the EU customs union without a deal. At this point, it looks as if the market is trying to find whether there is enough support just below the 1.32 level to continue the recent bullishness.
The Euro initially tried to rally during the day on Tuesday, but turned around to fall towards the 1.17 level, an area that has been supported recently. The question now is whether or not this level will hold?
The Australian dollar fell rather hard during the day on Tuesday, crashing into the vital 0.74 level, an area that has been supportive a couple of times now. I think at this point, it looks like we are probably going to be more range bound than anything else.
Investing.com – Crude oil prices settled modestly higher Tuesday, recovering from nearly one-month lows intraday as traders turned attention to U.S. data that is expected to show another draw in stockpiles.
Natural gas prices formed an outside day. The weather continues to point to cooler than normal temperatures throughout most of the mid-west and the pattern is moving eastward. Target support on natural gas prices are seen near an upward sloping trend line that comes in near 2.67.
Gold prices tumbled on Tuesday, as commentary from Fed Chair Powell, allowed the greenback to gain traction. Gold prices drop sharply on Tuesday slicing through former support which were the July and December lows at 1,236, and headed toward target support near the July 2017 lows at 1,204. Resistance on the yellow metal is seen near former support at 1,236 and then the 10-day moving average at 1,247. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.