Gold Price News and Forecast: XAU/USD range play continues, focus on Bollinger bands
Gold Price Analysis: Range play continues, focus on Bollinger bands
Gold's sideways churn in the range of $1,630 to $1,610 continues for the third day. With the decline in the price volatility, the Bollinger bands have narrowed. Bollinger bands are volatility indicators placed two standard deviations above and below the price's 20-day moving average. A low-volatility period often paves the way for a big move on either side.
The focus, therefore, is on the upper and lower bands currently located at $$1,626 and $1,612, respectively. An hourly close above the upper band would imply a range breakout and open the doors to a test of recent highs above $1,640. Alternatively, a range breakdown would expose the support at $1,594.
Gold is a sitting duck for hungry bears, straddles a fragile 1600/50 range
The price of gold has been consolidating a move int the 1600s, slightly lower today as markets overnight pounced back with a vengeance as investor begin to look through the virus and are seeing the light at the end of the tunnel. At the time of writing, gold is trading at $1,616.26, between a range of $1,615 and $1,626.55.
In New York, North American stocks resumed their climb with a 3.4% advance in the S&P 500, adding to sizeable gains the prior week. Meanwhile, US Treasuries rose on a 5bp selloff in the 30-year, with 10-year yields moving higher by 2bps to 0.70%.
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