Skip to content
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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
Gold Price Outlook - Slipping Towards Short-Term Support

Gold Price Outlook - Slipping Towards Short-Term Support

Nick Cawley, Strategist

Gold Price Analysis, Charts and Price

  • Gold may find short-term support at $1,540/oz.
  • Medium- to longer-term technical should stem any further sell-off.
Traits of Successful Traders
Traits of Successful Traders
Recommended by Nick Cawley
Traits of Successful Traders
Get My Guide

What are Safe-Haven Assets and How to Trade Them

The daily gold chart shows the precious metal ebbing lower towards the January 3 low of $1,540/oz. as risk assets remain better bid ahead of this Wednesday’s signing of phase one of the US-China trade deal. Gold has fallen nearly 4% from the recent $1,611.5/oz. high print made on January 8, after the US and Iran dialed back on threats of additional military action in the Middle East and may enter a period of sideways price action as gold bulls and bears look to find equilibrium.

The longer-term chart remains positive with gold trading above all three moving averages, while the recent sell-off has seen the precious metal move out of overbought territory using the CCI indicator.

Dollar, Gold Yen: What are the Top Safe-Havens of 2020?

For a full rundown of all market moving economic data and events see the DailyFX Calendar

Gold Daily Price Chart - XAU/USD (May 2019 - January 13, 2020)

Gold in US dollars price chart
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Nick Cawley
Improve your trading with IG Client Sentiment Data
Get My Guide

Another major driver of gold price action, the US dollar, is struggling to break above its medium-term moving average with the 50-dma capping any rally since the start od December 2019. The dollar basket chart shows an unbroken series of lower highs and lower lows off the October 1 high at 99.228, while both the 20- and 50-dmas have broken below the 200-dma, a bearish technical signal. Further slippage in the US dollar basket may well provide a supportive driver for gold.

US Dollar Basket (March 2019 – January 13, 2020)

US dollar daily price chart

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 (XAU/USD) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.

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

DISCLOSURES