Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
David Becker
Comex Gold

Gold prices moved sideways on Monday following Friday’s stronger than expected US GDP report and this weeks central bank meetings. The Fed is widely expected to cut interest rates this week, but traders will need to keep and eye on the Bank of Japan which is scheduled to meet on Tuesday.

Trade gold with FXTM

Know where Gold is headed? Take advantage now with 

75% of retail CFD investors lose money



Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:30 Churchill Place, London, E14 5EU, UK

Min Deposit:$10

Visit Broker

82% of retail CFD accounts lose money

Technical Analysis

Gold prices edged higher on Monday ahead of several central bank monetary policy meetings scheduled for this week. Prices eased above the 10-day moving average at 1,422, which is now seen as short term support. Further support is seen near an upward sloping trend line that comes in near 1,414. Resistance is seen near the July highs at 1,452. Short term momentum is negative as the fast stochastic is prints in the red with a downward sloping trajectory. The current reading on the fast stochastic is 48, which is in the middle of the neutral range and reflects consolidation. Medium term momentum remains negative as the MACD (moving average convergence divergence) histogram is printing in the red with a downward sloping trajectory which points to consolidation.


The Bank of Japan Meets Tuesday

The Bank of Japan meets on Tuesday and expected to keep rates unchanged. No new action is expected from the central bank, but  there is some speculation that Governor Kuroda could reinforce the forward guidance.  Inflation remains subdued by  June Japanese retail sales held in a bit better than expected.  Sales were flat in June though economists expected around a 0.3% decline. The sales tax will be hiked in October, which could put additional pressure on sales.

Former Federal Reserve Chair Janet Yellen said she supports a 25-basis-point cut in the central bank’s benchmark interest rate, as the global economy weakens and inflation in the United States is lower.The U.S. central bank is widely expected to cut interest rates by a quarter point on Wednesday for the first time in more than a decade. That’s despite recent economic data indicating that the U.S. economy is still going strong. GDP rose by 2.1% Friday which was more than expected.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.