- Gold futures have remained practically flat around $1,900.
- XAU/USD is approaching the tip of a triangle pattern.
Gold’s futures have remained moving directionless within a tight range, both sides of $1,900 on Monday. The precious metal is approaching the tip of a triangle pattern that has been shaping over the last four weeks
Bullion prices have been trading within a $10 range, between $1,898 and $1,908 on a risk-off session, with the USD outperforming its main peers on growing concerns about the global increase of COVID-19 cases.
A record of infections in the US and France and the tighter restrictions in Spain and Italy to attempt to curb the second wave of the pandemic has crushed risk appetite on Monday boosting demand for the safe-haven USD. The upbeat news from Oxford/AstraZeneca, whose vaccine has shown a strong immune response on elderly patients has failed to improve the mood.
Gold prices forming a triangle pattern
From a technical point of view, daily charts show XAU/USD posting higher lows and low tops over the last four weeks, forming a triangle shape that is reaching its tip.
On the downside, immediate support would be in the $1,895/00 area, where the October 22 and 23 lows and the base of the triangle lie. A clear breach of this level might push the pair towards $1,885 (100-day SMA and October 14 low) and $1,850 (late September lows).
On the upside, a bullish reaction might find resistance at the confluence of the 50-day SMA with the top of the triangle; the downward trendline from mid-August highs, now at $1,920. A confirmation above here might give confidence to the bulls to test $1,934 (October 12 high) ahead of $1,975 (mid-September highs).
XAU/USD daily chart
-637393431077074581.png)
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats to 1.0750, eyes on Fedspeak
EUR/USD stays under modest bearish pressure and trades at around 1.0750 on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.
GBP/USD struggles to hold above 1.2500 ahead of Thursday's BoE event
GBP/USD stays on the back foot and trades in negative territory below 1.2500 after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.
Gold fluctuates in narrow range above $2,300
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.