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
Subscribe
Please try again
EUR/USD
Bearish
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
Bullish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/qbgOyJ7gwT
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.17% 🇨🇭CHF: 0.14% 🇦🇺AUD: -0.05% 🇨🇦CAD: -0.08% 🇳🇿NZD: -0.13% 🇬🇧GBP: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/cSsg7l8b4x
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.05% Wall Street: 0.01% US 500: 0.01% France 40: -0.02% FTSE 100: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/CyoJBdYbGT
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Gold: 0.01% Silver: -0.22% Oil - US Crude: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/cZeVIxiAJm
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.32%, while traders in NZD/USD are at opposite extremes with 75.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fmCBX0W0w3
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: 0.07% Silver: -0.21% Oil - US Crude: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/MBlfthkrSp
  • Heads Up:🇲🇽 Monetary Policy Meeting Minutes due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-26
  • What are some key influences Black Friday has on the economy and stock markets? Find out: https://t.co/KIsvaIWZDN https://t.co/NS7o4MrEok
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.06% US 500: 0.04% Wall Street: 0.01% France 40: -0.03% FTSE 100: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/zTLPlL868T
  • 🇨🇦 Average Weekly Earnings YoY (SEP) Actual: 6.9% Previous: 7.9% https://www.dailyfx.com/economic-calendar#2020-11-26
Gold Price - Looking For a Reason to Range Break as Volatility Wanes

Gold Price - Looking For a Reason to Range Break as Volatility Wanes

2020-10-27 11:00:00
Nick Cawley, Strategist
Share:

Gold (XAU/USD) Analysis, Price and Chart

  • Gold confined in a narrowing trading range.
  • Volatility on the wane.
  • Retail traders remain heavily long of the precious metal.
Advertisement

Gold has had a quiet few days of late with price action contained within a short- to medium-term trading range. The precious metal needs a fundamental driver to break this range and with the US presidential elections on the horizon, a breakout may soon happen. The direction of the break is slightly harder to work out, although the current weakness of the US dollar is underpinning the price of gold, along with a jittery equity space, as Q3 earnings start to reveal the full impact of the coronavirus on various sectors. In addition, the record spread of the coronavirus in the US, Russia, and parts of Europe will add to the risk-off tone in the market.

The technical picture is slightly more cloudy with medium-term lower highs converging with short-term higher lows, indicating a break is near. Two moving averages seem to be capping upside movement this week with the 20-day simple moving average holding sway around $1,905/oz. followed by the 50-dma at $1,915.5/oz. Above here, the next level of resistance is the 23.6% Fibonacci retracement at $1,928/oz. Initial support for gold is between $1,890/oz. and $1,880/oz.

Gold Daily Price Chart (March – October 27, 2020)

Gold Price - Looking For a Reason to Range Break as Volatility Wanes
Gold MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 3% 5% 3%
Weekly 10% 0% 8%
What does it mean for price action?
Get My Guide

IG retail trader datashow 79.89% of traders are net-long with the ratio of traders long to short at 3.97 to 1, a contrarian bearish signal. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Gold price may soon reverse higher despite the fact traders remain net-long.

Gold Price - Looking For a Reason to Range Break as Volatility Wanes
Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Nick Cawley
Trading Forex News: The Strategy
Get My Guide

What is your view on Gold – are you bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES