Gold bears lining-up for potential profit-taking scramble

  • Gold consolidates as market get set for a breakout, one way or the other.
  • Month-end flows could be the trigger to set off a phase of distribution. 

The price of gold has accumulated bids and offers in a precarious spot on the charts, drawing in anticipation of a phase of distribution. 

On the day, the price has stuck to a tight range of between $1,765.94 and $1,775.69 and is down by 0.07% at the time of writing.  

However, gold futures settled with a modest gain and leaves the prospects for a positive half of a year by quarter-end for prices. 

COVID-19 is a major factor for gold's safe-haven flows and a second wave hitting global economies, is bound to keep prices elevated.

However, profit-taking could well be a consequence of month-end which could potentially lead to a technical breakdown in the chart. See below.

Declining real rates should imminently support gold prices into the $1800s

However, the fundamentals are a likely factor to keep bears second guesing.

"Indeed, with rates vol constrained, rising long-term inflation expectations have been a powerful driver lifting gold prices higher,' analysts at TD Securities explained. 

Price action continues to lend strength to our view that gold's role is shifting from a safe-haven asset, to an inflation-hedge product.

Looking forward, we also see substantial room for this driver to run, as the entire maturity spectrum of inflation breakevens are still priced below policy objectives.

In this context, declining real rates should imminently support gold prices into the $1800s. 

The analysts also explained that "the world-war era fiscal and central bank stimulus, the change in the central bank template that will incorporate 'symmetric inflation targets' and unwinding globalization, also suggest that inflation-hedge assets may grow in popularity. 
Eventual tailwinds in commodity demand should also be particularly supportive of silver prices, which have retained their historically high sensitivity to their industrial component.'

Gold levels


Today last price 1770.35
Today Daily Change -0.99
Today Daily Change % -0.06
Today daily open 1771.34
Daily SMA20 1732.05
Daily SMA50 1722.11
Daily SMA100 1667.98
Daily SMA200 1586.78
Previous Daily High 1772.04
Previous Daily Low 1747.59
Previous Weekly High 1779.41
Previous Weekly Low 1742.97
Previous Monthly High 1765.38
Previous Monthly Low 1670.72
Daily Fibonacci 38.2% 1762.7
Daily Fibonacci 61.8% 1756.93
Daily Pivot Point S1 1755.27
Daily Pivot Point S2 1739.21
Daily Pivot Point S3 1730.82
Daily Pivot Point R1 1779.72
Daily Pivot Point R2 1788.11
Daily Pivot Point R3 1804.17



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News