- A wedge pattern on the 4-hour chart hints at a potential reversal to 1,900.
- Gold sends mixed signals ahead of the new week’s trading; a rally to 2,000 is possible.
Gold spiked significantly this week and brushed shoulders with 1,960. The instability witnessed in the stock market saw the precious metal used as a hedging asset. The rally to 1,960 was a continuation of the uptrend started towards the end of October. The days heading to the US election shined a light on the gold, catapulting it to nee monthly levels.
XAU/USD closed the week changing hands at 1,952 after embracing support at 1,950. Gold’s immediate upside is capped by the seller congestion at 1,950. Consequently, the formation of a descending channel adds credulity to the bearish narrative. Therefore, it is likely for the precious metal to crumble in the coming week, especially if the wedge pattern support and the short-term anchor at 1,940 caves in.
On the downside, the initial point of contact could be the 50 Simple Moving Average in the-hour chart. Other tentative support areas include the 100 SMA and the 200 SMA at 1,900.
-637404352731531944.png)
XAU/USD 4-hour chart
If instability spikes in the stock market following Joe Biden’s win, gold could resume the uptrend abolishing the bearish outlook altogether. Moreover, holding the short-term support at 1,950 would allow bulls to shift the focus back to 2,000. However, the seller congestion 1,960 might absorb the buying pressure, delaying the price movement.
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 fluctuates near 1.0600 after US data
EUR/USD continues to move up and down in a narrow channel near 1.0600 in the second half of the day on Tuesday. Disappointing consumer confidence data from the US limit's the US Dollar's gains but the risk-averse market environment doesn't allow the pair to rebound.
GBP/USD struggles to gain traction, stays in red below 1.2200
GBP/USD stays in negative territory below 1.2200 on Tuesday as the US Dollar continues to find demand following a bearish opening in Wall Street. Meanwhile, the data from the US revealed that consumer confidence weakened further in September.
Gold challenges $1,900 after piercing September’s low Premium
Spot Gold accelerated its slide on Tuesday, with XAU/USD plummeting to $1,900.83, its lowest in almost two weeks. The US Dollar surged on the back of a worsening market mood at the beginning of the week, as investors got spooked by central banks’ pledges to keep rates higher for longer and dismal United States (US) data.
Shiba Inu inspired meme coin BONE notes first rise following the 55% crash in two months
Bone ShibaSwap, also known as BONE, is one of the few meme coins that had a positive run on Monday. The meme coin is slowly emerging into an entity of its own, provided it can attract enough users to fuel its long overdue recovery.
MULN enters first short-term uptrend in two months
Mullen Automotive (MULN), the micro-cap electric vehicle manufacturer out of Brea, California, has witnessed its stock enter a bullish uptrend for the first time since July 20.