Gold Price News and Forecast: XAU/USD looks north
|Gold Price Analysis: XAU/USD looks north, two key levels to watch out – Confluence Detector
Gold (XAU/USD) started out the US Non-Farm Payrolls (NFP) week on a solid footing, rallying nearly $20 on Monday. The metal bounced-off the SMA100 one-day support for the third straight day, courtesy of the broad retreat in the US dollar from two-month peaks.
The risk-on mood returned amid upbeat Chinese Industrial Profits data, lifting the sentiment on the global markets at the expense of the safe-haven greenback. Further, hopes of the US Congress reaching a fiscal stimulus deal also added to the broader market optimism.
Asia Update: Stocks fly as banks finally take off
Gold appeared to put in a good a base around $1,850 after a reasonably negative September, with the metal averaging a 1-2% move lower during the month in the past five years. It’s now down almost 5% on the month, and at slightly more compelling levels to enter into longs, given positions are much cleaner than even after last month sell-off.
Gold is up on a weaker US dollar, and more gains could be in the offing as focus shifts to US elections, political uncertainty and geopolitical risks.
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.