Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Forex Today: Gold Beats $2,300

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Metals Rise Strongly to New Highs; Fed’s Powell Has No Surprises; USD/JPY Retests 34-Year High at ¥152; Crude Oil, Gasoline Futures Break Higher; Eyes on Cocoa Futures After Spectacular Gains; Swiss CPI Unchanged.

  1. A few hours ago, spot Gold again rallied to a new all-time high above $2,300. Gold tends to be positively correlated with risk assets, many of which have been enjoying rallies to new highs in recent days. Trend traders will want to be long here. Other precious metals have also been seeing gains, with Silver rising strongly to a new 2-year high price. Some non-precious metals such as Copper are also breaking to new long-term highs.
  2. In the Forex market, the US Dollar Index was held at key resistance earlier this week, and has been sold since then, suggesting the Dollar has peaked for the time being, and giving a technical boost to all trades against the Dollar, many of which especially in commodities we can see performing well. It may be wise to trade against the greenback over the rest of this week, unless there is some surprising data released. Since today’s Tokyo open, the strongest major currency has been the New Zealand Dollar, and the weakest major currency has been the Swiss Franc. The Swiss Franc is weak because Swiss CPI data just released earlier today was unexpectedly low, with no month-on-month change at all when an increase of 0.3% was expected.
  3. In public remarks, US Fed Chair Powell stated that policymakers will wait for clearer signs of lower inflation before cutting interest rates, which is nothing new and no surprise to anyone.
  4. The Japanese Yen continues to be weak, keeping the USD/JPY currency pair near the record high it made very recently just below ¥152. Japanese financial officials will likely threaten intervention if ¥152 is tested again, but it seems likely that the price won’t fall very far in the meantime, giving traders potential opportunities to trade that range. Trend traders will still be interested on being long of the USD/JPY and in being short of the Japanese Yen in general. Analysts speculate that intervention by the Bank of Japan, if it comes, will likely drive the price down temporarily to about ¥147 / ¥147.50.
  5. Crude Oil is looking bullish, with both WTI and Brent hitting new 5-month high prices yesterday. Gasoline futures reached a new 18-month high yesterday.
  6. The minor commodity Cocoa continues to look very bullish over the long term, although the short-term price action is suggesting a deeper bearish retracement. The commodity superfood has almost tripled in value over the last year alone, with many analysts suggesting supply side shortages are at least partly to blame for the meteoric rise. There is more and more demand for Cocoa every year as it is coveted as a key ingredient for chocolate but also as a superfood in its own right. Trend traders will be interested on the long side, although which such high volatility and sharp gains, it could come crashing down at any time, so trend traders must be careful to use a disciplined stop loss if going long. As well as Cocoa futures, there are Cocoa ETNs available which may be more suitable for retail traders and investors.
  7. Yesterday’s releases of:
    • The ADP Non-Farm Employment Claims Forecast – came in stronger than expected, suggesting a more buoyant US economy.
    • US ISM Services PMI – came in weaker than expected, suggesting the US services sector is facing declining demand.
  8. There will be a release today of US Unemployment Claims data.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Most Visited Forex Broker Reviews