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.

Free Trading Guides
EUR/USD
Bearish
GBP/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
USD/JPY
Mixed
Gold
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
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • #USDollar May Rise if US #GDP Data, #TradeWar Risks Spook Markets https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2019/09/21/US-Dollar-May-Rise-if-US-GDP-Data-Trade-War-Risks-Spook-Markets.html
  • Asia #FX markets will be closely watching for developments in the ongoing China-led RCEP trade negotiations against the backdrop of slower global growth and rising protectionism. Get your market update from @ZabelinDimitri here: https://t.co/HZ8Loqj3Ey https://t.co/g332JcY549
  • What are trading journals? How can you create one and reduce your #FOMOintrading? Find out: https://t.co/0akgWbyJEw https://t.co/Xyy7rxZHip
  • 💷 $GBP British Pound Weekly Technical Outlook My latest take on Sterling price action as #Brexit risk comes back into scope. Commentary on the charts and implied volatility table included. More via @DailyFX ➡️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/09/21/gbp-to-usd-price-analysis-british-pound-eyes-rise-in-brexit-risk.html https://t.co/Hd6LAurfqG
  • The Singapore Dollar is driven by the Monetary Authority of Singapore, which manages exchange rate instead of short-term interest rates. Learn more on the $SGD and how to trade it from @ddubrovskyFX here: https://t.co/eWLM9XZs5Y https://t.co/SCHhCQhlFV
  • What are the common trading myths which can create #FOMOintrading? Find out: https://t.co/sDbOusCpzg
  • Walk through the new and improved IG Client Sentiment Data with @PeterHanksFX here: https://t.co/FTm5nXIAmq
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/Lk229DNh6n
  • Catch up with @JStanleyFX as he walks through some FX price action setups post-FOMC. Get your recap here: https://t.co/MD2PB33t0L
  • What is the @ecb (European Central Bank)? What are the key mandates of the bank and how can it affect the #forex market? Find out: https://t.co/romV4hPQJv https://t.co/4nlCaUNhpD
Gold Price Forecast: Making Another Run at Long-term Resistance

Gold Price Forecast: Making Another Run at Long-term Resistance

2019-08-23 22:00:00
Paul Robinson, Currency Strategist
Share:

Gold Price Technical Outlook:

  • Gold could use some more horizontal work before trading higher
  • Longer-term the bias remains the same, more rallying ahead

For the intermediate-term fundamental and technical outlook, check out the Q3 Gold Forecast.

Gold could use some more horizontal work before trading higher

In the middle of the month gold ran into a major long-term resistance zone from around 1520 up to 1575, created in the wake of the bull market spike-high in 2011. Since then we have seen gold cool off, but in a constructive manner.

The backing-and-filling process, outside of the volatile session on the 13th, had been gradual and suggestive of another run coming. Friday’s pop showed how twitchy gold is to the upside. It may take some more time to get a full-blown rally going, though; preferably it does, so a stronger base can get built to help propel price through long-term resistance.

If this is the case in the coming week, then look for a lack of direction in the near-term to continue. If price comes off a bit, an attractive spot to look for support is either 1480, the Aug 13th low, or the trend-line rising up from late May. From a tactical standpoint this could provide a nice backstop for longs, while leaving some good upside potential to trade back into the aforementioned resistance zone.

In the event gold continues to push higher beyond 1535, we will still need to be cognizant of the fact there is good resistance up until 1575. This makes it important to tread carefully with short-term longs as there could be some more push-back until the zone is cleared.

Keep in mind for the next couple of weeks, summer trading conditions likely won’t help the cause for a strong directional move. But this doesn’t mean if in front of the screens we can relax on managing existing risk.

Check out the IG Client Sentiment page to find out how changes in gold positioning could signal the next price move.

Gold Price Weekly Chart (big overhead resistance)

Gold Price Weekly Chart

Gold Price Daily Chart (acting well so far)

Gold Price Daily Chart

Helpful Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at@PaulRobinsonFX

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

DISCLOSURES

News & Analysis at your fingertips.