Gold Price News and Forecast: XAU/USD’s recovery appears capped below 200-DMA
|Gold gains are likely to be limited with first resistance at 1784/85
Gold Spot collapsed again towards the next downside target of 1763/60 but held 1point above. There’s no buy signal but we are so severely oversold that we need totrade sideways.
Gold gains are likely to be limited with first resistance at 1784/85 (in fact we toppedexactly here over night) but above yesterday’s high at 1789 meets a sellingopportunity at 1794/98 with stops above 1803. A break higher targets 1810/14. Read more...
Gold Price Forecast: XAU/USD’s recovery appears capped below 200-DMA
Gold (XAU/USD) slumped to five-month lows of $1765 on Monday but managed to recover $20 to finish the day around $1776. Gold’s decline was mainly driven by increased expectations of a swifter global economic recovery, as coronavirus vaccine rollout looks imminent and could propel a return of normality to markets early next year. The vaccine-induced optimism dented gold’s safe-haven appeal. US Treasury Secretary Steve Mnuchin’s call to utilize $455 billion from the CARES Act fuelled stimulus hopes and helped the upside attempts in the precious metal. However, the US dollar rebounded on month-end demand, which kept a check on gold’s recovery.
Gold clings onto the recovery gains so far this Tuesday amid a broad-based US dollar retreat, as the optimism over the vaccine and US stimulus combined with strong Chinese Manufacturing PMI boosts the demand for the riskier assets. However, it remains to be seen if the metal sustains the bounce, as the vaccine progress could once again overwhelm the gold traders. Read more...
Gold: The uptrend may be expected to continue
The uptrend may be expected to continue, while market is trading above support level 1784, which will be followed by reaching resistance level 1800 - 1810. An downtrend will start as soon, as the market drops below support level 1784, which will be followed by moving down to support level 1764.
An uptrend will start as soon, as the market rises above resistance level 1850, which will be followed by moving up to resistance level 1899. The downtrend may be expected to continue in case the market drops below support level 1780, which will be followed by reaching support level 1740. Read more...
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