Gold Price Forecast: Key Test as Price Rebounds to Former Support - Levels for XAU/USD Advertisement
Gold Price Outlook:
Gold prices have rallied sharply in recent days, but they’re not in the clear just yet.
Gold prices are struggling to climb back above their daily 5-, 8-, 13-, and 21-EMA envelope, which remains in bearish sequential order.
According to the IG Client Sentiment Index, gold prices have a mixed bias.
Gold Prices Bounce, but is it Believable?
Gold prices lost key technical support last week, but bulls aren’t ready to throw in the towel just yet. With US President Joe Biden’s $1.9 trillion fiscal stimulus plan moving closer to fruition, precious metals have been bid higher as the entrenched regime of low interest rates and climbing deficits and debts doesn’t appear to be going anywhere. But even as gold prices have rallied sharply in the past few days, bullion is not in the clear just yet. Testing the backside of former support (now re
FX Week Ahead - Top 5 Events: China, Mexico, & US Inflation Data; Fed Speeches; UK GDP
FX Week Ahead Overview:
Price pressures are in focus for market participants with inflation data from Mexico (Tuesday), China (Wednesday), and US (Wednesday).
Focus returns back to the US Dollar in the coming days, with the US fiscal stimulus talks ongoing and Fed Chair Jerome Powell set to deliver a speech
Changes in retail trader positioning suggest that most USD-pairs are on mixed footing.
02/09 TUESDAY | 12:00 GMT | MXN Inflation Rate (JAN)
On Tuesday, the January Mexican inflation rate (CPI) is expected to show an uptick from +3.15% to +3.46% (y/y). Higher inflation may help cool some of the dovish talk at the margins around Banxico in recent months, which in turn could help the Peso continue last week’s run of strength. Recall that at the end of 2020, Mexican President Andres Manual Lopez Obrador nominated Galia Borja Gomez, the Treasurer of the Mexican Finance Ministry, to join Banx
US Dollar Forecast: Time to Fade the DXY Index Rally? Advertisement
US Dollar Outlook:
The US Dollar may not have many bullish catalysts ahead of it, unless of course taper tantrum fears begin to set back in.
The January US inflation rate (CPI) report and Fed Chair Jerome Powell’s speech on Wednesday are the top events in the coming days.
The IG Client Sentiment Indexsuggests the US Dollar is on mixed footing heading into mid-February.
US Dollar Turns Lower in a Meaningful Way
The US Dollar (via the DXY Index) remains above the uptrend off the January swing lows, but something is amiss. The technical development at the end of last week (more below) suggests that the recent rally may be running out of steam. The largest component of the DXY Index, EUR/USD, has duly rebounded at critical support, while the resilient post-Brexit GBP/USD remains in bullish breakout territory. Now that a $1.9 trillion US fiscal stimulus deal is coming into focus, the theme of