We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • RT @HuXijin_GT: Based on what I know, China-US trade talks made breakthrough last week and the two sides have the strong will to reach a fi…
  • If a #Brexit deal is reached, Sterling will rally further, while in the equity space, the domestically-focused FTSE 250 should outperform the export-focused #FTSE 100. Get your market update from @nickcawley1 here: https://t.co/nfgon4la8s https://t.co/IEBfQ1wYx9
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -0.13% Wall Street: -0.21% Germany 30: -0.32% France 40: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Kh9F9IPP6d
  • RT @carlquintanilla: Morgan Stanley thinks the next few weeks/months could “resemble what we saw last December, albeit less dramatic given…
  • RT @onlyyoontv: Chatted China’s take on DC trade talks and, @SullyCNBC— as I mentioned, Tencent has started broadcasting @NBA games again!…
  • BoE's Cunliffe says Brexit uncertainty has weighed on investment, adds that even if we get a Brexit transition deal, still do not know what the final trading relationship will be $GBP
  • .@DailyFX has just launched our new Worldwide Commodities Infographic. Be sure to check it out here to track major geopolitical players as well as live market prices -> https://www.dailyfx.com/research/global-commodities https://t.co/gUmzIfJReN
  • RT @TeddyVallee: *CHINA TO STRICTLY PROTECT IP RIGHTS, PREMIER LI SAYS
  • RT @onlyyoontv: When asked about next steps, @stevenmnuchin1 tells @CNBC: 1) deputy level calls this week 2) top negotiators’ (Lighthizer,…
  • Join @JWagnerFXTrader 's #webinar at 9:30 AM ET/1:30 PM GMT at the US market opening bell. Register here: https://t.co/9pXwJzGj54 https://t.co/Sf3agAblgC
Gold Price Targets: XAU/USD Recovery to be Short-lived- GLD Outlook

Gold Price Targets: XAU/USD Recovery to be Short-lived- GLD Outlook

2019-09-20 15:30:00
Michael Boutros, Technical Strategist
Share:

Gold prices are poised to snap a three-week losing streak with XAU/USD rallying more than 0.9% to trade at 1502 ahead of the New York close on Friday. Despite the recent advance, gold remains vulnerable heading into the September close with price continuing to consolidate just below long-term uptrend resistance. These are the updated targets and invalidation levels that matter on the XAU/USD weekly charts. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this gold price setup and more.

New to Gold Trading? Get started with this Free How to Trade Gold -Beginners Guide

Gold Price Chart - XAU/USD Weekly

Gold Price Chart - XAU/USD Weekly - GLD Trade Outlook - XAUUSD Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; Gold on Tradingview

Notes: In my last Gold Price Weekly Outlook we noted that, “The medium-term risk remains lower for gold but we’re looking for support nearby.” XAU/USD tested last week’s low at 1483on the back of the FOMC interest rate decision before rebounding with price respecting the weekly opening-range into Friday trade.

The key gold trading levels remain unchanged from last week with price holding just below critical resistance at 1522/26 – a region defined by the late 2011 & 2012 swing lows. Ultimately a breach / close above this threshold is needed to fuel the next leg higher in XAU/USD.

That said, the medium-term risk remains tilted to the downside while below this threshold with initial weekly support eyed at the highlighted trendline confluence around ~1465and the 100% extension at 1451 – weakness beyond this level would suggest a larger correction is underway. A topside breach exposes subsequent resistance objectives at 1558 and the key 61.8% retracement of the decline off the 2011 record highs at 1586.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line: Gold prices are in consolidation just below long-term trend resistance. From at trading standpoint, looking sideways to lower over the next few weeks with a larger decline to offer more favorable long-entries closer to trend support. IF price breaks higher, we’ll look to fade weakness into 1522 targeting a stretch towards new highs in the precious metal. Review my latest Gold Price Outlook for a closer look at the near-term XAU/USD technical trading levels.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

Gold Trader Sentiment - XAU/USD Price Chart

Gold Trader Sentiment - XAU/USD Price Chart - GLD Trade Outlook - XAUUSD Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long Gold - the ratio stands at +2.18 (68.6% of traders are long) – bearish reading
  • Long positions are 1.5% lower than yesterday and 5.4% higher from last week
  • Short positions are 13.4% higher than yesterday and 12.0% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Spot Gold price trend may soon reverse higher despite the fact traders remain net-long.

See how shifts in Gold retail positioning are impacting trend- Learn more about sentiment!

---

Previous Weekly Technical Charts

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

https://www.dailyfx.com/gold-price?ref-author=Boutros

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.