Gold Price Outlook Breaking Down - Is Bullish Momentum About to Crack?
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Gold Price Forecast, Technical Analysis and Charts:
- Gold remains above the recent uptrend line for now.
- Financial markets remain risk-on and that’s weighing on gold.
Brand New Q4 2019 Gold Forecast and Top Trading Opportunities
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Gold Price Fundamental Outlook
Gold’s recent push higher is fading as markets put their faith in the latest round of optimistic US-China trade deal reports. News outlets are saying that the US may dial back on some of the tariffs imposed on Chinese goods on September 1 to help push through phase one of a deal with China, and markets are taking a positive slant. The Chinese Yuan is trading back below 7.00 against the US dollar for the first time in three months, after having hit a peak of USD/CNH 7.196 in early September.
USD/CNH Daily Price Chart (March – November 5, 2019)
Gold Price Technical Analysis
While risk-on asset markets are booming – S&P 500, Nasdaq and the Dow Jones all hit record highs Monday –traditional risk-off markets – Japanese Yen, Swiss France and gold – are all fading lower. Gold’s recent move higher helped set-up a bullish pennant pattern, but this is now starting to break down. The extended uptrend line from the October 1 low remains in place and continues to provide support for a further move higher although his move is weakening. The trend line is around $1,500/oz. and is just above both the 20- and 50-day moving averages and a break and close below all three would call the recent bull move further into doubt. Initial support from the downtrend line around $1,488/oz. before the recent double lows at $1,482/oz. before $1,474/oz.
Gold Price Daily Chart (March – November 5, 2019)
How to Trade Gold: Top Gold Trading Strategies and Tips
IG Client Sentiment shows how traders are positioned in a wide range of assets and markets. Retail customers are 64% net-long gold, a bearish contrarian bias. However, recent daily and weekly positional shifts give us a mixed outlook.
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
What is your view on Gold – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at firstname.lastname@example.org or via Twitter @nickcawley1.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.