Skip to Content
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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Gold Price Targets: XAU/USD Still Vulnerable into FOMC- GLD Levels

Gold Price Targets: XAU/USD Still Vulnerable into FOMC- GLD Levels

Michael Boutros,
What's on this page

Gold prices are in consolidation with the recent price rally still at risk while below near-term downtrend resistance. These are the updated targets and invalidation levels that matter on the XAU/USD charts this week. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this Euro price setup and more.

New to Gold Trading? Get started with this Free How to Trade Gold -Beginners Guide

Gold Price Chart - XAU/USD Daily

Gold Price Chart - XAU/USD Daily - GLD Trade Outlook - Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; Gold on Tradingview

Technical Outlook: In my latest Gold Price Outlook we noted that XAU/USD was approaching a key resistance pivot and, “the risk remains for a deeper correction here while below this level.” The threshold in focus remains the 1522/26 confluence zone where the late-2011 & 2012 lows converge on the monthly open. Look for a reaction into this region IF reached with the broader advance vulnerable while below. Key daily support steady at the August swing-low / 50% retracement at 1479/80 – a break / close below is needed to suggest a more significant high was registered this month.

Gold Price Chart - XAU/USD 120min

Gold Price Chart - XAU/USD 120min - GLD Trade Outlook - Technical Forecast

Notes: A closer look at gold price action shows XAU/USD trading within the confines of a well-defined descending pitchfork formation we’ve been tracking off August / September highs. Price has carved out an embedded near-term consolidation formation after rebounding off the lower parallel last week.

Initial resistance stands at 1511 backed by the highlighted trendline confluence around 1520- critical resistance / bearish invalidation steady at 1526. Initial support rests at 149/97 with a break below the weekly open at 1488 needed to mark resumption of the near-term downtrend targeting 1479 and the 61.8% retracement at 1460.

Why does the average trader lose? Avoid these Mistakes in your trading

Bottom line: The risk remains for further losses while within this formation with a break below weekly open support needed to fuel the next leg lower in price. From at trading standpoint, we’ll favor fading strength sub-1520. Ultimately a larger correction would offer more favorable long-entries closer to broader trend support. Review my latest Gold Price Weekly Outlook for a closer look at the longer-term XAU/USD technical trading levels.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Gold Trader Sentiment - XAU/USD Price Chart

Gold Trader Sentiment - XAU/USD Price Chart - GLD Trade Outlook - Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long Gold- the ratio stands at +2.29 (69.6% of traders are long) – bearishreading
  • Long positions are 2.3% higher than yesterday and 1.5% higher from last week
  • Short positions are1.6% higher than yesterday and 3.4% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger Spot Gold-bearish contrarian trading bias from a sentiment standpoint.

See how shifts in Gold retail positioning are impacting trend- Learn more about sentiment!


Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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