Gold Price Analysis: XAU/USD now up nearly 1%, ETFs amass record inventory

Dollar sell-off propels gold to session highs above $1,910.
Gold is now chipping away at a two-month descending trendline.
ETFs amassed record inventory in the first nine months of 2020.

Omkar Godbole FXStreet Contributor

The upward move in gold is gathering steam with markets offering US dollar alongside continued risk-on action in the global equities.

The yellow metal is now trading at a session high of $1,912 per ounce, representing a 0.95% gain on the day.

That level is currently housing the resistance of the trendline falling from the record high of $2,075 reached on Aug. 7.

Acceptance higher would signal a revival of the broader uptrend from lows near $1,450 observed in March and open the doors to a re-test of the record high of $2,075.

The daily chart MACD histogram has already crossed into bullish territory above zero for the first time since Aug. 10.

Besides, investor demand has been strong as evidenced by a surge in stockpiles held by the Gold-backed exchange-traded funds (ETFs).

The ETFS have added more than 1,000 tonnes of bullion in the first nine months of 2020.

According to Reuters News, the hoarding seen in the first nine months of the year far exceeds any previous full year.

That said, a breakout in gold may remain elusive if equities drop in the run-up to the Nov. 3 US Presidential Elections, as warned by Goldman Sachs, boosting the haven demand for the US dollar.

Daily chart

Technical levels

XAU/USD

Overview
Today last price	1912.03
Today Daily Change	18.11
Today Daily Change %	0.95
Today daily open	1893.92

Trends
Daily SMA20	1907.57
Daily SMA50	1940.42
Daily SMA100	1860.38
Daily SMA200	1742.37

Levels
Previous Daily High	1900.72
Previous Daily Low	1882
Previous Weekly High	1917.16
Previous Weekly Low	1848.82
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1893.57
Daily Fibonacci 61.8%	1889.15
Daily Pivot Point S1	1883.71
Daily Pivot Point S2	1873.49
Daily Pivot Point S3	1864.99
Daily Pivot Point R1	1902.43
Daily Pivot Point R2	1910.93
Daily Pivot Point R3	1921.15

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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