Gold Price News and Forecast: XAU/USD bulls battling it out ahead of key US data
|Gold Price Analysis: XAU/USD bound by support and resistance, market liquidating longs
Speculators were quick to buy the dip in gold following the sharp pullback last week and we have seen the price stabilise to form a critical support structure. However, positioning data suggest that specs rushed to cover their shorts rather than seek to buy in at a discount.
We have seen a marginal liquidation of speculative longs which could contribute to a deeper in precious metals, however, the data is collected form the week prior to the release and thus isn't representative of today nor tomorrow. There is plenty of room for a bullish case from a fundamental point of view and this week could be the one that underpins the inflation hedge.
Gold: Bulls battling it out ahead of key US data
Gold (XAU/USD) snaps three-day losing streak and trades with mild gains around $1930 on Wednesday, underpinned by the downbeat market mood. The risk tone remains fragile, as concerns over the global economic recovery return after the US Consumer Confidence disappointment. The Conference Board’s index slumped to 84.8 in August, the lowest level since 2014. The continued rise in the coronavirus cases across Asia and Europe adds to the jittery markets. The economic worries offset the US-China trade deal optimism, benefiting the traditional safe-haven gold.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.