Gold Price Analysis: XAU/USD bears eye a decisive break below $1871 – Confluence Detector
Gold (XAU/USD) licks wounds after hitting fresh monthly lows below $1870 on Wednesday. The yellow metal fell amid resurgent haven demand for the US dollar, as partial lockdowns implemented in Germany and France threatened to derail the global economic recovery.
“Sell everything mode” returned to markets amid renewed coronavirus fears, as gold tumbled alongside stocks. The metal closed below the critical 100-DMA support of $1887 on a daily basis for the first time since March. Let’s take a look at the charts to see if gold will resume its downtrend. Read more…
Gold Futures: Downside appears capped
Investors trimmed their open interest positions in Gold futures markets by around 10.5K contracts on Wednesday, according to advanced figures from CME Group. Volume, instead, went up sharply by around 144.3K contracts, reversing three consecutive daily pullbacks.
Gold could extend the drop to $1,850/oz
Wednesday’s downtick in Gold prices was on the back of shrinking open interest, hinting at the idea that a deeper retracement seems unconvincing for the time being. Despite this view, the ounce troy of the precious metal does not rule out a potential test of the September low in the $1,850 region. Read more…
Gold Price Analysis: XAU/USD holds steady below $1880 level, upside seems limited
Gold edged higher through the early European session and was last seen hovering near the top end of its daily range, just above the $1880.
The precious metal managed to regain some positive traction on Thursday and recovered a part of the previous day’s sharp fall to one-month lows amid a subdued US dollar demand. The uncertainty over the outcome of the US presidential election held the USD bulls from placing aggressive bids, which, in turn, was seen as a key factor lending some support to the dollar-denominated commodity. Read more…