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
Bullish
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
Gold Prices Must Break Key Chart Barrier to Resume Uptrend

Gold Prices Must Break Key Chart Barrier to Resume Uptrend

2019-10-25 22:00:00
Ilya Spivak, Sr. Currency Strategist
Share:

GOLD TECHNICAL FORECAST: NEUTRAL

  • Gold prices may be on the cusp of the next phase in rising trend
  • If confirmed, Flag pattern implies a rally to test above $1600/oz
  • Longer-term positioning warns a bearish scenario may prevail

Check out our Q4 gold forecast to see what will drive the price trend through year-end!

Gold prices have drifted lower in a narrow band established since forming a top in early September, passing through support guiding the upward trend since mid-year. It remains to be seen whether current positioning represents the start of a bearish reversal or a corrective pullback before another topside push.

The latter scenario would echo the digestive pause between late February and May. That marked a break of the rally from mid-August 2018 that retraced a bit of the advance and carved out a new base and slope for subsequent bullish resumption.

If the latest pullback is confirmed as bullish Flag continuation pattern on a daily close above its upper boundary, a similar outcome would be hinted. The pattern’s implied measured-move objective would call for prices to breach the latest swing top and test above the $1600/oz figure.

Gold Weekly Chart

Daily gold chart created with TradingView

The downside argument is yet to be conclusively invalidated however. A spirited foray higher was met with a wave of selling, producing a dramatic-looking wick on the October 25 daily candle. That speaks to a lack of bullish conviction that might open the door for sellers to take the reins in earnest.

Zooming out to the monthly chart reveals another worrying sign for buyers. To play out the Flag formation, prices would need to breach long-standing support-turned-resistance in the 1522.93-60.00 area. The appearance of negative RSI divergence warns of ebbing momentum as this barrier is tested.

XAUUSD Monthly Chart

Monthly gold chart created with TradingView

The week ahead might well offer resolution one way or the other. The economic calendar is packed with heavy duty event risk – the Fed rate decision, most of all – with credible scope for breakout volatility. However, longer-term fundamental forces might well be conspiring to engineer a selloff.

--- Written by Ilya Spivak, Sr. Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivakon Twitter

GOLD TRADING RESOURCES

OTHER TECHNICAL FORECASTS:

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

DISCLOSURES

News & Analysis at your fingertips.