Gold Price Prediction: XAU/USD downside aims for 1,850
Gold closed the trading this week at 1,897, as reported on Saturday. The rally above 1,900 was mainly attributed to the news that the US President, Donald Trump, had tested positive for COVID-19. Trump’s doctor said that he is “doing very well” but must stay in the hospital for a few days. However, uncertainty continues to mount in the stock market over Trump’s illness and the presidential election only a few weeks away. However, many analysts expect that gold will capitalize on this uncertainty to post gains in the coming days.
Looking at the 4-hour chart, XAU/USD is hanging in the balance after rejection from 1,900. The formation of a bear flag pattern adds credence to the downward momentum. If the pattern’s support gives in after the markets open on Monday, the precious metal could dive much lower.
Gold Weekly Forecast: The price is close to an important resistance level leading into next week
The weekly chart below shows the black resistance line at the old September 2011 high of USD 1920.94 per troy ounce. It is interesting that this area has come back to haunt the bulls but a break and close above on the daily chart could be significant. It would then be the start of the confirmation that the retracement is over.
This week the price came very close to testing the resistance area and stopped just short at USD 1917.10. Although the shadows (wicks) of the previous few weeks candles come slightly lower down.