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
Oil - US Crude
Bearish
Wall Street
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Can anyone explain Bitcoin's 'flash crash'??? #BTC #bitcoin @DailyFXTeam 🤔🤔 https://t.co/jeravYvq68
  • #Gold rising alongside stocks and yields. 'Risk-on' tilt has driven #USD lower, so anti-fiat demand may be overpowering other forces. Classic 'risk-on' elsewhere: #AUD and #NZD up with #SPX500 futures, #JPY down alongside #bonds https://t.co/D6iK49Kfsz
  • 🇩🇪 GfK Consumer Confidence Actual: -18.9 Expected: -18.3 Previous: -23.1 https://www.dailyfx.com/economic-calendar#2020-05-26
  • 🇨🇭 Balance of Trade Actual: CHF4.3B Previous: CHF3.1B https://www.dailyfx.com/economic-calendar#2020-05-26
  • 🇩🇪 GfK Consumer Confidence Actual: -18.9 Expected: -18.3 Previous: -23.4 https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇨🇭 Balance of Trade due at 06:00 GMT (15min) Previous: CHF3.2B https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇩🇪 GfK Consumer Confidence due at 06:00 GMT (15min) Expected: -18.3 Previous: -23.4 https://www.dailyfx.com/economic-calendar#2020-05-26
  • Since talks of stimulus and monetary easing continue to take place, the longer term outlook for #gold remains constructive. Get your $XAUUSD market update from @PeterHanksFX here: https://t.co/s5sFogjgrq https://t.co/OdZTEgEATw
  • 🇯🇵 All Industry Activity Index MoM Actual: -3.8% Previous: -0.7% https://www.dailyfx.com/economic-calendar#2020-05-26
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.64%, while traders in US 500 are at opposite extremes with 76.83%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TcyJoemjzl
Gold Price Forecast: Looking to Punch Through Chart Resistance

Gold Price Forecast: Looking to Punch Through Chart Resistance

2020-01-31 22:00:00
Nick Cawley, Strategist
Share:

Gold Price, News and Chart

  • Chinese flu, US dollar weakness fueling gold’s push higher.
  • A confirmed break higher and gold’s upward momentum may well be re-fueled.

Gold (XAU/USD) Chart Showing Open Spaces Ahead

A great week for gold bulls with fundamental drivers forcing the price of the precious metal ever higher. A weaker US dollar and heightened fears over the spread of the Chinese coronavirus have given gold bugs a hefty dollop of bullish momentum. While entering a rising market, backed by strong technical and fundamentals is the textbook way of trading, the fact that one variable – the Chinese flu-virus – has had such a strong impact on the price, adds a layer of caution to the trade. One constant that traders can look forward to in the weeks ahead is increased volatility as fundamentals and technicals battle to take control of longer-term price levels.

Gold Price Forecast: Potential XAU/USD Breakout as Virus Fears Escalate

The price of gold is now attempting to punch through old horizontal resistance off the January 8 candle at $1,588.6/oz. This print was the highest made in nearly seven years and above here resistance points become harder to identify. The daily chart shows the price of gold propped up by the 20-day moving average, which now acts as support around $1,564/oz. Below here a cluster of recent highs and lows around $1,557/oz. The precious metal is mildly overbought but not to the extent seen in late-December to early-January. Supportive short-term higher lows over the last two weeks add further bullish sentiment.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Nick Cawley
Traits of Successful Traders
Get My Guide

Gold Daily Price Chart (May 2019 - January 31, 2020)

Daily XAUUSD Price chart

To find the next levels of resistance we need to look at the monthly chart and, even then there is little in the way of specific price points. A wider look at the chart suggests the formation of a cup-and-handle pattern which would imply that $1,796/oz. level is the approximate technical target. Gold has broken above the 23.6% Fibonacci retracement of the August 1999 – September 2011 long-term rally at $1,527/oz. while all three moving averages paint a bullish picture.

Monthly Gold Price Chart (January 1997 – January 31, 2020)

Monthly gold 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

The recent CoT report showed traders trimming their net-long positions in gold, but they still remain at elevated levels.

XAUUSD Price & Positions

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 – 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

News & Analysis at your fingertips.