Gold Plunges After Yellen’s Remarks

FXOpen

Gold extended a downside movement on Monday during the Asian session, dragging the price of the yellow metal to less than $1320 an ounce following the speech by the Federal Reserve head Jannet Yellen. The technical bias remains bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the precious metal is being traded near 1317 an ounce. A huge support can be noted around $1310, the swing low of the latest major downside move ahead of $1300, the psychological number. A break and daily closing below the $1300-$1310 support area could incite a renewed selling interest, validating a move towards the $1260 level.

Gold Plunges After Yellen’s Remarks

On the upside, the precious metal is likely to face a hurdle near $1342, the intraday high of Friday ahead of $1350, the psychological number and then $1367, the swing high of the latest major upside rally. A break and daily closing above the $1367 support area could open the door to $1390 and then $1400. The technical bias will remain bullish as long as the $1310 support area is intact.

Yellen Speech

At the Jackson Hole Symposium on Friday, Ms. Yellen said concerns that the economic growth has eased, and that the possibility of an interest-rate increase will continue to be influenced by economic data.

“In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal-funds rate has strengthened in recent months,” Ms. Yellen said in prepared remarks.

While Ms. Yellen’s comments leave the door open to a rate increase in September, many remain skeptical that the Fed will raise interest rates in the near term.

Trade Idea

Considering the overall technical and fundamental outlook, buying the precious metal around the current levels appears to be a good strategy if we get a valid bullish reversal candle in the daily chart.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Shares

Coca-Cola Company (KO) Shares Trade Near All-Time High

Stock market charts indicate that from the start of last week’s trading through to its close:

→ The S&P 500 Index (US SPX 500 mini on FXOpen) declined by approximately 3%;
→ Pepsico (PEP) shares dropped by more than

Cryptocurrencies

BTC/USD Analysis: Bulls on the Offensive

In our previous analysis of Bitcoin’s price (14 April), we:

→ constructed a long-term ascending channel (marked with blue lines);

→ highlighted resistance level R, suggesting that the bulls were seizing the initiative in an attempt to pave the way for

Commodities

Market Analysis: Gold Extends Record Run, WTI Crude Oil Rebound in Tandem

Gold price started a fresh surge above the $3,250 resistance level. WTI Crude oil prices climbed higher above $60.00 and might extend gains.

Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today

· Gold price started a

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.