Close Preview x  
Close x
Expert Advisor Hosting Request

Please provide the following information:
(All Fields Required)

X My Account Secure Account Login Login

Close x
Online Security

Secure login
Ensuring the security of your personal information is of paramount importance to us. When you sign in to the trading platform, your User ID and password are secure.

The moment you click Login, we encrypt your User ID and password using 128-bit Secure Sockets Layer (SSL) technology.

Browser security indicators
You may notice when you are on our website that some familiar indicators do not appear in your browser to confirm the entire page is secure. Those indicators include the small "lock" icon in the bottom right corner of the browser frame and the "s" in the Web address bar (for example, "https").

To provide the fastest access to the trading platforms, we have made signing in to trading platforms secure without making the entire page secure. Again, please be assured that your ID and password are secure.

Close x

We would like to contact you by telephone to help you make the most of your demo account, and inform you about our products and services. By submitting your telephone number you agree that can contact you by telephone.
Privacy policy
Gold rebounds as Trump takes swipe at Fed, stocks tumble

Updated  Oct 11, 2018 8:03:09 AM Written by Fawad Razaqzada

Risk remains out of favour following yesterday’s big drop in global stock markets. In FX markets, the US dollar has fallen further thanks to slightly lower US bond yields after President Donald Trump shockingly announced that the Federal Reserve was making a "mistake" and described the path of rate hikes as being "crazy." The weakness in the dollar and yields have helped to underpin lower-yielding and noninterest-bearing assets such as gold, which until yesterday had hardly responded to the recent stock market weakness. But the main focus will be on Wall Street again when trading gets underway later this afternoon. Will there be further sharp losses to come, and if so could safe haven gold and yen rise further? Or will we see some bargain hunting following the steep falls? It is impossible to say which of the two outcomes will play out today, but things aren’t looking great at the moment.

Brutal sell-off in stock markets

Just before the big stock market drop, we thought that there was a slim chance equities were trying to rebound yesterday, but didn’t get the confirmation we were looking for on the German DAX index as it never went to that 12000 level. Instead, it broke down as too did the other major global indices, leading to further technical follow-up selling. As the selling gathered momentum, panic took hold which eventually saw the Dow Jones Industrial Average shed more than 1,000 points from its high. On a closing basis, the Dow fell more than 800 points, or around 3%, which was its worst fall in eight months. Similar losses were seen for the other major US indices and Asian markets overnight. The negativity has followed-through to European indices which were going to open sharply lower anyway.

Trade war concerns, rising borrowing costs undermine equities

We have been banging on about it that a brutal sell-off was coming, but few had expected such a steep one-day drop. The recent drop in equity prices has been due to a number of factors that had been building up in recent weeks, not least concerns over trade between the two largest economies in the world – the US and China – and its potential impact on global growth. On top of this, the rising levels of government bond yields have been diverting attention away from assets that had been offering the most attractive returns for investors in recent years. Chief among them have been the stock markets. While we are not necessarily calling this the top, the fact that central bank stimulus is slowly being withdrawn bodes ill for equities in the long run.

Gold rises to test key resistance again ahead of US CPI

In another “risk-off” sign, gold finally found support yesterday and has risen further today as yields and dollar eased back after US President Donald Trump said the Fed was making a "mistake" and described the path of rate hikes as "crazy." The safe haven metal had hardly responded to recent stock market sell-off, as investors found better yields in the fixed income markets. But now that the dollar and yields have eased back, gold is finding some solid support, especially given that the stock markets are selling off. The metal could extend its gains further should it finally crack that $1205-$1215 resistance range, which was being tested at the time of writing, on a daily closing basis. We want to wait for it to do this before turning bullish on gold. After all, it could easily turn lower in the event the dollar rises again, say on the back of a surprisingly strong US CPI report later on today. A close above $1205-$1215 could pave the way for a rally to the next potential resistance at $1238. However, if that $1180/3 support area gives way first then all bets are off.  

Source: TradingView and

Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that is not rendering investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. is regulated by the Commodity Futures Trading Commission (CFTC) in the US, by the Financial Services Authority (FCA) in the UK, the Australian Securities and Investment Commission (ASIC) in Australia, and the Financial Services Agency (FSA) in Japan. Please read Characteristics and Risks of Standardized Options.


Test your trading strategies risk free btn_demo_blue_hover.gif OR btn_open_an_account_dark_grey_alt_hover.gif

Have more questions?

Chat Live Now or call 0800 032 1948