Forex Trading Gold XAUUSD and Silver XAGUSD at Support. 5 Reasons Why Precious Metals Have Fallen. CAD Employment Figures Today.

In today’s GCI Market Outlook, let’s take a look at Forex Trading on USDCAD, CADCHF, WTI Crude Oil, the Dow Jones Industrial Average, the NASDAQ, Silver, XAGUSD, and Gold, XAUUSD.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

You may think it strange that the price of gold is actually falling under the geopolitical unrest, but there are many reasons.

We see both gold and silver falling back to support, and we will wait for a break to the downside or a bounce to the upside.

The strengthening USD is putting pressure on the pairs, XAUUSD and XAGUSD, but, more importantly, the yields of US treasury bills are rising, and this is always contrary to price action on gold.

Also, after a long rally to over $5,400 and $96, respectively, profit-taking has occurred, and here we are.

In many cases, fund managers are selling gold to offset losses in other areas, like the stock markets.

And, finally, with all the commotion in the Middle East, inflation fears are back in the news, which means USD may become more attractive if the Fed considers raising interest rates.

All this is bad news for the stock markets, and we see the price action on the Dow Jones Industrial Average at support.

If we move out to the daily chart, we see a bleak picture of a market in free-fall with only hints of support below.

If we look at the daily chart on the NASDAQ, we see at least some semblance of support going back to September of last year.

Of course, the whole world is following the price of oil, and we see it creeping back up again and slightly consolidating.

The stochastic oscillator is overbought but this is not a technical trade by any means.

Any good news from the Middle East will see prices falling and, on the contrary, any more escalations or blocked shipping lanes will see prices rising.

Today, we will get Employment figures from Ottawa and this could give us an opportunity to enter a position if the news temporarily drives price action against the trend.

Thanks to the price of crude oil, CAD is strong against every major currency except USD.

So, if the news drives price action lower in USDCAD, we may have an opportunity.

Or, if the news drives price action against the trend on CADCHF, we may have an opportunity as well but watch for resistance at this key level.

Of course, if the price of WTI falls, for whatever reason, the value of the Canadian dollar will fall as well, so be careful.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.