Gold Short Term Rally Getting Solid
On Wednesday, spot gold rose 0.8% to $1,809, surpassing $1,800 for the first time since 2011.
Share this:
The US Dollar was bearish against all of its major pairs on Tuesday. On the US economic data front, Empire Manufacturing unexpectedly fell to 4.9 on month in December (6.3 expected), from 6.3 in November. Finally, Industrial Production rose 0.4% on month in November (+0.3% expected), compared to a revised +0.9% in October.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending December 11th is expected. Retail Sales Advance for November is expected to slip 0.3% on month, compared to +0.3% in October. Markit's US Manufacturing Purchasing Managers' Index for the December preliminary reading is expected to fall to 55.8 on month, from 56.7 in the November final reading. Finally, the Federal Open Market Committee (FOMC) is expected to keep the Federal Funds Target Rate between 0.00% and 0.25%.
The Euro was bearish against most of its major pairs with the exception of the USD. In France, November inflation rate was confirmed at +0.2% on month, as expected. Also, in the UK, the three-month (August-October) jobless rate was released at 4.9% (vs 5.1% expected).
The Australian dollar was bullish against most of its major pairs with the exception of the CAD and GBP.
Traders may see some added volatility on Wednesday when Canada announces its inflation rate for November. Historically, CPI data adds 70.5 pips of volatility on average in the 4 hours after past events. Economists are anticipating a slight increase to 0.8% vs 0.7% in Oct. Looking at the chart, the USDCAD remains in a well-defined downtrend after the pair broke below a consolidation zone at the beginning of December. Price action is riding the lower Bollinger band indicating strong bearish momentum. As long as 1.299 resistance is not broken to the upside we are anticipating a continuation of the trend towards the next support level of $1.2555.
Source: GAIN Capital, TradingView
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending December 11th is expected. Retail Sales Advance for November is expected to slip 0.3% on month, compared to +0.3% in October. Markit's US Manufacturing Purchasing Managers' Index for the December preliminary reading is expected to fall to 55.8 on month, from 56.7 in the November final reading. Finally, the Federal Open Market Committee (FOMC) is expected to keep the Federal Funds Target Rate between 0.00% and 0.25%.
The Euro was bearish against most of its major pairs with the exception of the USD. In France, November inflation rate was confirmed at +0.2% on month, as expected. Also, in the UK, the three-month (August-October) jobless rate was released at 4.9% (vs 5.1% expected).
The Australian dollar was bullish against most of its major pairs with the exception of the CAD and GBP.
Traders may see some added volatility on Wednesday when Canada announces its inflation rate for November. Historically, CPI data adds 70.5 pips of volatility on average in the 4 hours after past events. Economists are anticipating a slight increase to 0.8% vs 0.7% in Oct. Looking at the chart, the USDCAD remains in a well-defined downtrend after the pair broke below a consolidation zone at the beginning of December. Price action is riding the lower Bollinger band indicating strong bearish momentum. As long as 1.299 resistance is not broken to the upside we are anticipating a continuation of the trend towards the next support level of $1.2555.
Source: GAIN Capital, TradingView
The US Dollar was bearish against all of its major pairs on Tuesday. On the US economic data front, Empire Manufacturing unexpectedly fell to 4.9 on month in December (6.3 expected), from 6.3 in November. Finally, Industrial Production rose 0.4% on month in November (+0.3% expected), compared to a revised +0.9% in October.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending December 11th is expected. Retail Sales Advance for November is expected to slip 0.3% on month, compared to +0.3% in October. Markit's US Manufacturing Purchasing Managers' Index for the December preliminary reading is expected to fall to 55.8 on month, from 56.7 in the November final reading. Finally, the Federal Open Market Committee (FOMC) is expected to keep the Federal Funds Target Rate between 0.00% and 0.25%.
The Euro was bearish against most of its major pairs with the exception of the USD. In France, November inflation rate was confirmed at +0.2% on month, as expected. Also, in the UK, the three-month (August-October) jobless rate was released at 4.9% (vs 5.1% expected).
The Australian dollar was bullish against most of its major pairs with the exception of the CAD and GBP.
Traders may see some added volatility on Wednesday when Canada announces its inflation rate for November. Historically, CPI data adds 70.5 pips of volatility on average in the 4 hours after past events. Economists are anticipating a slight increase to 0.8% vs 0.7% in Oct. Looking at the chart, the USDCAD remains in a well-defined downtrend after the pair broke below a consolidation zone at the beginning of December. Price action is riding the lower Bollinger band indicating strong bearish momentum. As long as 1.299 resistance is not broken to the upside we are anticipating a continuation of the trend towards the next support level of $1.2555.
Source: GAIN Capital, TradingView
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending December 11th is expected. Retail Sales Advance for November is expected to slip 0.3% on month, compared to +0.3% in October. Markit's US Manufacturing Purchasing Managers' Index for the December preliminary reading is expected to fall to 55.8 on month, from 56.7 in the November final reading. Finally, the Federal Open Market Committee (FOMC) is expected to keep the Federal Funds Target Rate between 0.00% and 0.25%.
The Euro was bearish against most of its major pairs with the exception of the USD. In France, November inflation rate was confirmed at +0.2% on month, as expected. Also, in the UK, the three-month (August-October) jobless rate was released at 4.9% (vs 5.1% expected).
The Australian dollar was bullish against most of its major pairs with the exception of the CAD and GBP.
Traders may see some added volatility on Wednesday when Canada announces its inflation rate for November. Historically, CPI data adds 70.5 pips of volatility on average in the 4 hours after past events. Economists are anticipating a slight increase to 0.8% vs 0.7% in Oct. Looking at the chart, the USDCAD remains in a well-defined downtrend after the pair broke below a consolidation zone at the beginning of December. Price action is riding the lower Bollinger band indicating strong bearish momentum. As long as 1.299 resistance is not broken to the upside we are anticipating a continuation of the trend towards the next support level of $1.2555.
Source: GAIN Capital, TradingView
Related tags:
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold Q4 2026 outlook: Resilience in the face of rallying dollar and yields
As we headed towards the latter stages of Q3 and into Q4, the Fed had just hiked rates in a hawkish FOMC meeting, while the likes of the ECB and BoJ had also tightened their respective policies. Oil prices remained elevated amid the prolonged US-Iran conflict. Meanwhile, bond yields were breaking out, and the dollar was higher across the board. Yet, remarkably, gold was still holding in the positive territory for the third quarter, even if it had weakened somewhat in September.
Gold forecast: XAU/USD could take a larger dive after the big rise in yields
Gold prices have been falling in the last few days after last week’s post-FOMC pop faded amid rising interest rate expectations, higher oil prices and a strengthening US dollar. As before, I wasn’t convinced gold would thrive in the current macro backdrop.
Gold, silver slammed as hawkish Fed repricing reignites dollar upside
Gold and silver had held up surprisingly well against surging US yields. Wednesday’s DXY breakout may have changed that equation.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.