Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Gold Price Targets: XAU/USD Threatens Breakout- GLD Outlook

Gold Price Targets: XAU/USD Threatens Breakout- GLD Outlook

What's on this page

Gold prices are on the counter-offensive mid-week with the precious metal poised to mark a third consecutive daily advance. The recent gains take price into near-term resistance however and leave the immediate rally vulnerable heading into this key threshold. These are the updated targets and invalidation levels that matter on the XAU/USD charts this week. 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 Daily

Gold Price Chart - XAU/USD Daily - GLD Trade Outlook - Technical Outlook

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

Technical Outlook: In my latest Gold Price Outlook we noted, “the risk for a deeper pullback while below 1522/26. Form a trading standpoint, be on the lookout for a breakout of the monthly consolidation / topside exhaustion ahead of the monthly high-day close at 1505on rebounds IF price is indeed heading lower.” Price registered a low this week at 1480 before rebounding off slope support with the subsequent rally testing this resistance zone today – note that the September trendline now converges on this region as well and further highlights its technical significance- looking for a reaction here.

A topside breach / close above is needed to shift the medium-term focus higher with key resistance steady at 1519/22. Initial weekly support rests with the monthly trendline backed by the monthly open at 1472 and the monthly opening-range lows / key support at 1451/61- look for a bigger reaction there IF reached.

Gold Price Chart - XAU/USD 120min

Gold Price Chart - XAU/USD 120min - GLD Trade Outlook - Technical Forecast

Notes: A closer look at gold price action shows XAU/USD continuing to coil into the monthly opening-range with price holding within the confines of an ascending pitchfork formation extending off the monthly lows. Gold is testing confluence resistance now at 1502- a region defined by the 61.8% retracement and the September trendline. IF price fails here (ahead of 1505), look for a break below slope support to fuel the next leg lower in price.

Why does the average trader lose? Avoid these Mistakes in your trading

Bottom line: We’re on the lookout for breakout of the 1472–1505 range. From at trading standpoint, a good spot to reduce long-exposure / raise protective stops. We’ll favor fading weakness IF this holds targeting a break below the weekly open. Ultimately, a larger pullback in gold would likely offer more favorable long-entries close to trend support with a breach above the September trendline needed to shift the focus higher. Review my latest Gold Price Weekly Outlook for a closer look at the longer-term XAU/USD technical trading levels.

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

Gold Trader Sentiment - XAU/USD Price Chart

Gold Trader Sentiment - XAU/USD Price Chart - GLD Trade Outlook - Technical Update
  • A summary of IG Client Sentiment shows traders are net-long Gold- the ratio stands at +2.13 (68.02% of traders are long) – bearishreading
  • Long positions are0.35% higher than yesterday and 0.69% lower from last week
  • Short positions are6.50% lower than yesterday and 2.42% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. Tradersare more net-long than yesterday but less net-long from last week. The combination of current positioning and recent changes gives us a further mixed Gold trading bias from a sentiment standpoint.

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


Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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