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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • #SP500 futures tumbling through Bear Flag support at the 3300 mark. Implied measured move suggests a push to 3000 could be on the cards if price breaks below the June high (3231.25) $ES $SPX https://t.co/o26aOMmin8 https://t.co/pS7A9CVmt6
  • For those who like taking a look through memory lane, stocks (SPX) are heading to its historically worst patch in the year (Historical average based on 1990-2019 performance) https://t.co/RuhNxy6TYr
  • US futures tumble and European equities trade sharply lower: - S&P 500 (-0.34%) - Nasdaq 100 (-1.6%) - Dow Jones (-2.08%) - DAX (-2.86%)
  • $USDJPY plunging to its lowest levels since March as support at the July low (104.18) gives way. Daily close below the 104 level could bring the March 12 swing-low (103.08) into focus Is $USDJPY headed to parity? https://t.co/QtlWIPKbU6
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/7fMGgU3vUn
  • RT @MrMBrown: $GBP looks to be in for a rough ride this week - mounting speculation of tighter covid restrictions; Brexit trade talks remai…
  • 🇪🇸 Balance of Trade (JUL) Actual: €-0.31B Previous: €1.48B https://www.dailyfx.com/economic-calendar#2020-09-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.14%, while traders in NZD/USD are at opposite extremes with 72.33%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/pzRhq9H8WP
  • Heads Up:🇪🇸 Balance of Trade (JUL) due at 08:00 GMT (15min) Previous: €1.48B https://www.dailyfx.com/economic-calendar#2020-09-21
  • Hang Seng Index (HSI) fell over 1.8%. It is likely to end the day with a large bearish candlestick, which flags more downside risk. Breaking below 24,000 support will likely open the door for further losses with an eye at 23,780 - the 61.8% Fibonacci downward extension. https://t.co/mrYUt8dBvX
Gold Forecast: XAU/USD Price Consolidation Set to Snap

Gold Forecast: XAU/USD Price Consolidation Set to Snap

2020-09-05 16:00:00
Rich Dvorak, Analyst
Share:

Gold Price Forecast - Precious Metals Pressured as US Dollar Stabilizes; Chart Support in Sight

Gold and silver prices have slumped to start the month of September

XAU/USD price action peels back and probes a key support zone

Precious metals could struggle if the US Dollar takes off

Precious metals stumbled lower last week with gold and silver prices declining about 2% a piece. The two shiny commodities failed to catch a bid despite broad-based investor risk aversion underpinned by a sharp pullback in major stock indices. Perhaps the powerful rebound staged by the US Dollar to start the month of September weighed negatively on XAU/USD price action.

Starts in:
Live now:
Sep 21
( 10:09 GMT )
Recommended by Rich Dvorak
Key UK Events and Markets for the Week Ahead
Register for webinar
Join now
Webinar has ended

Gold prices might face further headwinds if the Greenback can extend its aggressive rise off two-year lows. Another downside risk that could undermine gold price action includes potential for a widespread market sell-off earmarked by a ‘dash to cash.’

Gold Price Chart with US Dollar Index Overlaid: Daily Time Frame (28 Apr to 04 Sep 2020)

Gold Price Chart XAU USD Forecast

Chart created by @RichDvorakFX with TradingView

That said, a daily gold chart shows the precious metal perched upon a key support zone. The $1,915-price level stands out as a critical area of technical support that could stymie gold selling pressure. This area of confluence around the $1,900-handle is highlighted by August lows. Not to mention, gold price action has notched a series of higher lows on a closing basis over the last few trading sessions, which likely helps keep upward biases intact.

Gold MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 3% 6% 4%
Weekly 0% -2% 0%
What does it mean for price action?
Get My Guide

Gold Price Chart: Daily Time Frame (28 Apr to 05 Sep 2020)

Gold Price Chart Forecast Technical Analysis

Chart created by @RichDvorakFX with TradingView

Yet, the precious metal has recorded a string of lower highs as well, with gold consolidating lower from its all-time high above $2,000/oz printed early last month. This conflict between short-term rising and falling trend lines appears to have formed a symmetrical triangle pattern. Also, as gold bulls and bears battle over bullion’s next direction, trader indecision appears to have formed a doji candlestick on Friday. Also, gold is now wedged between its bullish medium term 50-day moving average and bearish 20-day moving average.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Rich Dvorak
Traits of Successful Traders
Get My Guide

Reclaiming the 20-day moving average could open up the door for a retest of the psychologically-significant $2,000-price level before record highs come back into consideration. Breaching the 50-day moving average and 12 August intraday swing low could indicate a larger pullback may be in the cards for gold price action.

Keep Reading: Gold Forecast Bright & Volatile as USD, Real Yields Swing

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES