Gold Wobbles Above $1400 as Dollar Stubbornly Clings to Gains

Open your FXTM account today

Investors seem to be re-evaluating whether the Federal Reserve will cut interest rates this month following the strong US jobs data and this continues to be reflected in the Dollar’s positive valuation. A resurgent Greenback complemented up with fading hopes of a Fed cut is certainly bad news for zero-yielding Gold in the near term.

However, Gold bulls are unlikely to lose sleep over this development given how global growth concerns, trade uncertainty and other geopolitical risks linger in the vicinity. Although the Fed may think twice before pulling rate cut trigger this month, the central bank is highly to act before year-end.

Away from the fundamentals, the technical illustrate a bullish picture on the daily charts. The trend points south despite Friday’s heavy selloff with buyers in control above $1380. A technical rebound from the $1380-$1400 region should inject bulls with enough inspiration to challenge $1430 and beyond.

Alternatively, a breakdown below $1380 should spark a depreciation towards $1360.

GBPUSD aggressively knocks on 1.2500’s door

Buying sentiment towards the Pound continues to diminish by the day as the poisonous combination of Brexit uncertainty, political risk, recession fears cripple appetite for the currency.

The GBPUSD is heavily bearish on the daily charts and has space for further downside amid an appreciating Dollar. A solid breakdown below 1.2500 should open the gates towards 1.2420 in the near term.

This setup will most likely be influenced by the pending GDP m/m report on Wednesday morning.


Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Published by

Lukman Otunuga

Lukman Otunuga is a research analyst at FXTM. A keen follower of macroeconomic events, with a strong professional and academic background in finance, Lukman is well versed in the various factors affecting the currency and commodity markets. Lukman provides in-depth analysis on the global currency and commodity markets and is often quoted by leading international media outlets such as: MarketWatch, CNBC, NASDAQ, Reuters, AFP, The Guardian and Yahoo. Prior to joining FXTM, Lukman spent two years as a research analyst with international currency broker FXCM, where he focused on a technical and fundamental analysis of the global currency, commodity, and stock markets. Lukman was also responsible for leading educational seminars for international and local high net worth individuals, and has published a series of educational articles on forex trading with City A.M. Lukman holds a BSc (hons) degree in Economics from the University of Essex, UK and an MSc in Finance from London School of Business and Finance, where he studied corporate finance, mergers & acquisitions and the role of international financial institutions