This, coupled with the lingering political tension s in the united states, has extended additional support to gold’s safe-haven appeal. However, there is a combination of factors that could prevent the precious metal from witnessing any significant rally in the near-term, which will keep bulls from placing aggressive bets.
A goodish pickup in the US Treasury bond yields could help the dollar limit any further declines. Additionally, the growing concerns over the second wave of the Coronavirus disease and renewed lockdown restrictions could bolster the greenback’s appeal as the global reserve currency.
Finally, the prevailing risk-on market mood, following revived hopes for additional US fiscal stimulus measures, could add to the growing fundamental factors preventing a bullish rally in gold.
In other news, Fed Chair Jerome Powell is scheduled to give a speech later today. As always, traders will be focusing o this event to get near-term trading opportunities in the North American session.
Gold (XAU) Value Forecast — October 19
XAU/USD Major Bias: Sideways
Supply Levels: $1923, $1933, and $1940
Demand Levels: $1900, $1876, and $1849
As the market awaits volatility from fundamental factors, gold appears poised to take the $1923 resistance once again. Following last week’s decline to the base of our ascending channel, the next viable move is up.
Our ascending channel has been prevailing since September and appears to be dictating the yellow metal’s price action ever since. That said, the major aim remains the $1940 mark.
On the flip side, a fall from this level will likely be strongly supported by the $1900 psychological support, which coincides with the current base of our channel. A break below that level could be dangerous for bulls.
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
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