Two trades to watch: Gold, FTSE

Gold looks towards 3 month high despite Fed taper talk. FTSE looks to retake 7000.

Gold 4

Gold looks to 3 month high despite Fed’s taper talk 

Gold saw a volatile session on Wednesday amid the collapse of the crypto market and after the minutes to the FOMC. 

Investors selling out of crypto could be buying into gold, lifting the price as most major cryptos lost around 30% in the crash. 

The minutes to the Fed meeting revealed that members are ready to start the tapering debate in coming meetings, which sent yields and the USD higher dragging on gold. 

Today, as the market continues digesting the minutes yields are retreating giving gold space to continue its recovery. 

US weekly jobless claims will be in focus. 

Learn more about trading gold 

Where next for Gold price? 

The gold price trades within an ascending channel dating back to early April in a clear upward trend. The trend remains intact despite yesterday’s selloff. 

The RSI is heading into overbought conditions so a period of consolidation could be on the cards before further gains. 

Gold is attacking resistance on the upper band of the ascending channel at 1875 which is also horizontal resistance the high January 25. A break above here could see yesterday’s high and a three month high of 1890 come into focus ahead of 1900.  

A move below 1844 the descending trendline support  and horizontal support could negate the near term uptrend and open the door to a deeper selloff. 


FTSE looks to test 7000

The FTSE, in line with its European peers, is heading higher, despite a weak handover from the US. 

Fed minutes revived taper jitters hitting sentiment for riskier assets.  

Today the tone is more promising amid the easing of lockdown restrictions in Europe and growing optimism that the covid vaccine is effective against the Indian variant.

Rising commodity prices could help lift heavyweight resource stocks & oil majors.

Watch for earnings from easyJet, Kingfisher and Royal Mail 

Where next for the FTSE? 

Despite falling over 1% in the previous session, the FTSE continues to trade within its multi-month ascending channel on the daily chart. It found support at the lower band of the channel and the 50 sma in the previous session at around 6900 before rebounding.  

The price is testing resistance at 7000, the key psychological level and the 20 sma on the daily chart. A move beyond here could prompt further gains towards the weekly high around 7100. 

On the flip side, a move out the ascending channel below 6900 could bring a more bearish view with sellers gaining traction below 6820.  

FTSE 100 trading guide

How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

More from Trade Ideas


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.