Gold Price Analysis: XAU/USD struggles for direction, stuck in a range near $1900 mark

  • Gold now seems to have formed a symmetrical triangle on short-term charts.
  • Neutral technical indicators warrant caution before placing directional bets.

Gold extended its sideways consolidative price moves through the early North American session and remained confined in a narrow trading band, around the $1900 mark.

Looking at the technical picture, the XAU/USD has been oscillating between two converging trend-lines over the past one month or so. The range-bound trading action constitutes the formation of a symmetrical triangle on short-term charts.

The symmetrical triangle, though could be categorized as a bearish continuation, marks indecision over the precious metal's near-term trajectory. Moreover, neutral oscillators on 4-hourly/daily charts haven't been supportive of any firm near-term direction.

Hence, the direction of the next major move can only be determined after a valid breakout. This, in turn, warrants some caution for aggressive traders and points to an extension of the subdued trading action amid a combination of diverging forces.

A weaker tone surrounding the US dollar might continue to lend some support to the dollar-denominated commodity. However, indications of a strong opening in the US equity markets might undermine the safe-haven XAU/USD and any attempted positive move.

In the meantime, immediate resistance is pegged near the $1917-18 region, which if cleared decisively might be seen as a fresh trigger for bullish traders. Gold might then aim to surpass the $1932 intermediate hurdle and test the $1950-55 supply zone.

Conversely, a convincing break below the triangle support, currently near the $1895 region, now seems to accelerate the fall towards the $1874-72 horizontal support. Subsequent weakness has the potential to drag the XAU/USD back towards September monthly swing lows, around the $1850-48 region.

XAU/USD 4-hourly chart


Technical levels to watch


Today last price 1905.52
Today Daily Change 1.34
Today Daily Change % 0.07
Today daily open 1904.18
Daily SMA20 1894.7
Daily SMA50 1924.87
Daily SMA100 1873.28
Daily SMA200 1754.74
Previous Daily High 1918.58
Previous Daily Low 1897.1
Previous Weekly High 1933.3
Previous Weekly Low 1882.46
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1910.37
Daily Fibonacci 61.8% 1905.31
Daily Pivot Point S1 1894.66
Daily Pivot Point S2 1885.14
Daily Pivot Point S3 1873.18
Daily Pivot Point R1 1916.14
Daily Pivot Point R2 1928.1
Daily Pivot Point R3 1937.62



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

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD sits at two-month highs near 0.7375

AUD/USD keeps its range near two-month highs of 0.7375 despite a big miss on the Australian Q3 Capex data. The bulls retain control as the US dollar remains on the back foot across the board, in the face of renewed US economic growth concerns. 


USD/JPY revisits Wednesday's low as weak US data keeps dollar under pressure

USD/JPY drops over 20 pips in Asia to test Wednesday's low. USD/JPY is feeling the pull of gravity with the dollar drawing offers, possibly on disappointing US data released Wednesday. Disappointing US jobs data and dovish Fed minutes weigh over the dollar.


Gold hovers within the range of Wednesday's Doji candle

Gold's daily chart shows signs of indecision in the market. Wed's high and low are levels to beat for bulls and bears, respectively. A Doji candle represents indecision in the market and makes the following day's close pivotal.

Gold news

Markets return to normal, and traders may be loving it

Calendar comeback – currencies begin moving to the tune of economic indicators, a welcome return for traders. Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss the latest market moves and what to expect in the final stretch of 2020 and beyond.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info