News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
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
Oil - US Crude
Mixed
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
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
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
USD/JPY
Mixed
More View more
Real Time News
  • Update on #Cryptocurrencies #BITCOIN +0.27% #BITCOINCASH +0.49% #ETHEREUM +0.21% #RIPPLE +0.49% #LITECOIN +0.38%
  • The Nasdaq 100 just pulled back near an important area of big-picture support via the top of the decade-long channel it left behind back in July. Get your #Nasdaq technical analysis from @PaulRobinsonFX here:https://t.co/XhipuEMhyN https://t.co/BhSnsxU4IJ
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: -0.06% 🇯🇵JPY: -0.41% 🇪🇺EUR: -0.41% 🇨🇦CAD: -0.61% 🇳🇿NZD: -1.30% 🇦🇺AUD: -1.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/kCInf1EbdQ
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -1.05% Gold: -2.02% Silver: -6.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/YRqYY2B6Ui
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.16%, while traders in NZD/USD are at opposite extremes with 63.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/qnPrjK4cau
  • The USD/CAD breakout is now approaching near-term uptrend resistance and while the broader outlook remains constructive, the bulls may be vulnerable here. Get your $USDCAD technical analysis from @MBForex here: https://t.co/Bdr4y9lTJv https://t.co/kjg9w2JkLq
  • US Equities Update (Wednesday Close): $DJI -1.92% $SPX -2.37% $NDX -3.16% $RUT -3.04% $VIX +7.86%
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: US 500: -0.03% Wall Street: -0.03% Germany 30: -0.87% FTSE 100: -0.88% France 40: -0.89% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Je9EmV34kz
  • Looks like we got everyone's view on it: https://t.co/Y0zskurvsB
  • Commodities Update: NYM WTI Crude 39.83 (+0.08%), ICE Brent Crude 41.69 (-0.07%), NYM NYH Gasoline 117.81 (+1.19%). [delayed]
Gold Price Forecast: XAU Sinks to Support, Will Gold Bulls React?

Gold Price Forecast: XAU Sinks to Support, Will Gold Bulls React?

2020-08-24 19:42:00
James Stanley, Strategist
Share:

Gold Price Forecast Talking Points

  • Gold prices came into August with a full head of steam, setting a fresh all-time-high earlier this month.
  • Since then, buyers have taken a back seat as a rather sizable retracement has built-in.
  • More recently, Gold prices have appeared to settle around a key area of support, begging the question as to whether this is where bulls might respond to continue that prior topside trend, or whether a deeper pullback lies ahead.
  • As highlighted earlier this month, Gold price action finished the first week of August as a bearish engulfing pattern, which will often be approached with aims of bearish continuation. That pattern formed after a fresh all-time-high and since then, sellers have largely had control as prices have dropped and then digested. This pattern is taught as part of the DailyFX education curriculum.

Gold Prices Sink to Support – Can Bulls Find Footing?

Gold prices came into the month of August with a full head of steam, soon setting a fresh all-time-high in the first week of the month. But, that first week didn’t close with strength, as the first Friday of August produced a bearish engulfing candlestick that was highlighted in the Gold Weekly Technical Forecast.

As shared in that article, that pattern produced the potential for a pullback as an overbought trend began to digest. And while the following fall appeared rather dramatic, with Gold prices shedding about 10% in a week, the sell-off didn’t last for long and support soon played-in from around a trendline projection.

Traits of Successful Traders
Traits of Successful Traders
Recommended by James Stanley
Traits of Successful Traders
Get My Guide

Since then, however, price action has been fairly mean-reverting with support showing around the 1920-1941 area, also highlighted in that article a few weeks ago; with resistance coming in around the 1987-2009 spot, which was also highlighted but was previously being followed as a potential ‘s1’ spot of support.

Gold Hourly Price Chart

Gold hourly price chart

Chart prepared by James Stanley; Gold on Tradingview

Gold Price Action and the Trouble with Timing Trends

At this point the big question is whether this is the spot that Gold bulls decide to take over again or, whether they’ll take a back seat to allow for a deeper retracement. Such is often the scenario when dealing with an overbought (or oversold) market. But the prior trend is rather clear, which was aggressively bullish, and the question as to whether or not this is set to extend will likely be determined by headline drivers. It just so happens that this week’s Jackson Hole Economic Symposium is one of those possible venues for motivation; as a veritable ‘who’s who’ in Global Central Banking will descend (virtually) upon Jackson Hole, Wyoming’s Zoom channel to talk about big picture issues for the global economy.

Top Trading Opportunities in 2020
Top Trading Opportunities in 2020
Recommended by James Stanley
Get Your Free Top Trading Opportunities Forecast
Get My Guide

This can help to keep the focus on current support, with a breach above the 2009 level opening the door to the possibility of continuation for higher-highs and higher lows as buyers get back in the driver’s seat.

Gold Price Four-Hour Chart

Gold four hour price chart

Chart prepared by James Stanley; Gold on Tradingview

Gold Forecast
Gold Forecast
Recommended by James Stanley
Download our Q3 Gold Forecast
Get My Guide

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES