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
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Gold Price (XAUUSD) Forecast - Setting Up a New Trading Range

Gold Price (XAUUSD) Forecast - Setting Up a New Trading Range

2020-11-13 20:00:00
Nick Cawley, Strategist
Share:

Gold (XAU/USD) Analysis, Price and Chart

  • Gold nears moving average resistance.
  • Monday’s bear candle will likely trap gold’s price action.
  • Client sentiment is mixed despite clients being heavily long.
Advertisement

Gold had a sharp turn for the worse on Monday, selling off by around $100/oz. at one stage as positive

coronavirus vaccine news hit the wires. Coming on top of a Joe Biden victory in the US presidential elections,

investors dumped traditional safe-haven markets and piled into riskier assets. This sharp sell-off produced a

large bear candle on Monday which is likely to constrain price action in the short- to medium-term. While

today’s candle is mildly positive, after breaking a four-day series of lower highs, gold is struggling to make a decent move, in either direction.

Up ahead, the 20- and 50- day simple moving averages converge just above the $1,900/oz. mark. Above here

a cluster of recent highs will slow price action down as gold approaches the 23.6% fib retracement at

$1,928/oz. It may prove difficult in the short-term for gold to break above here. There is likely reasonably s/t

support either side of $1,850/oz. from recent low prints, before 38.2% fib at $1,836/oz. and the 200-day sma

at $1,824/oz.

While the chart continues to show a neutral bias, as it currently is, Monday’s $1,850 -$1,964/oz. candle will

hold sway over any price movement. Indeed it may well hold running into the end of the year.

Gold Forecast
Gold Forecast
Recommended by Nick Cawley
Get Your Free Gold Forecast
Get My Guide

Gold Daily Price Chart (March – November 13, 2020)

Gold Price (XAUUSD) Forecast - Setting Up a New Trading Range
Gold BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 4% 4% 4%
Weekly 10% 2% 9%
What does it mean for price action?
Get My Guide

IG retail trader datashow 84.04% of traders are net-long of gold. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall.Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Gold trading bias.

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