Gold: More weakness in the near-term before soaring to $2,000 next year – ABN Amro
Gold prices have struggled lately. A weaker dollar has supported the yellow metal somewhat but more investors have taken profit recently. Investors are now less convinced of another rise above $2,000 per ounce and are set to continue taking profits. However, economists at ABN Amro expect XAU/USD to race higher towards $2,100 in 2021.
Key quotes: "Despite the modest profit-taking, net long positions in the futures markets and the total outstanding ETF positions remain very large. In short, position liquidation risk is still there." Read more...
Gold ready for a falling wedge breakout on a close above $1913.50
Gold (XAU/USD) extends its three-day winning streak into Wednesday, mainly underpinned by the progress on the US fiscal stimulus talks, which diminished the haven demand for the US dollar. FXStreet's Dhwani Mehta eyes Wednesday's close as the yellow metal is set to see a likely falling wedge breakout on a close above $1913.50.
Key quotes: "It remains to be seen if the yellow metal can see a sustained move higher, as the US 10-year Treasury yields hold near four-month highs on the stimulus optimism. President Donald Trump agreed on a large multi-trillion aid bill, in order to clinch a deal ahead of the November 3 election. The stimulus talks are likely to continue later on Wednesday and therefore, the sentiment on the global markets and US dollar dynamics will play a pivotal role for fresh gold trades." Read more...
Gold to extend the consolidation phase ahead of new highs – Credit Suisse
Gold consolidation extends as XAU/USD continues to trade within its month-long range play between $1850-$1950, but with new highs eventually expected as the yellow metal holds the $1837 support, strategists at Credit Suisse apprise.
Key quotes: "Gold extends its consolidation/correction following the move to our base case objective of $2075/80 in August, but is still holding flagged support at $1837, the 38.2% retracement of the rally from March." Read more...
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