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.

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
Subscribe
Please try again
More View more
Real Time News
  • Further your trading knowledge and gain informed market analyses from our expert analyst @DavidJSong on Oil with our free Q4 guide, available for free today.https://t.co/Y6XECmr5fQ https://t.co/XQI3PN4bkQ
  • Nasdaq 100 may hit new high soon. https://t.co/ACtVqiOBl0
  • HSTECH index has likely formed an "Inverse Head & Shoulders" pattern. https://t.co/YFIQEYmuyq
  • The HSI has likely formed a “Double Bottom” chart pattern, which is usually viewed as bullish-biased. https://t.co/wMQ14A867Q
  • When markets are falling, how can you short sell? Learn more here:https://t.co/K4EFd6A6xd https://t.co/ynjtSQqHVy
  • Futures have their own set of characteristics and appeal to different types of traders and investors for a variety of reasons. Get your free trading guide and learn to trade the markets with futures here. Download your guide today!https://t.co/72oKM0kLHL https://t.co/dLBhWmxuub
  • Relative stability in EUR/USD has masked weakness in the Euro against most other major currencies, and that weakness can be expected to persist in the week ahead and likely for longer. Get your weekly Euro forecast from @MartinSEssex here: https://t.co/g6aCr7Uxg2 https://t.co/KZHBa4GXCN
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/Z8oipLero0
  • Gold prices moved higher last week, but an upbeat US retail sales report underpinned Treasury yields on Friday, which weighed on bullion. Chinese Q3 GDP is in focus for XAU traders. Get your weekly gold forecast from @FxWestwater here: https://t.co/L9JstXgjx0 https://t.co/rCikjEv1Fm
  • Equity traders often focus their approach on specific sectors, designed to fit with their approach and style. What sector are you going to target? Read more to find out!https://t.co/5gbiHmY8yl https://t.co/dzRs61zPlt
Gold Price Outlook: Gold Collapses- Relief in Sight?

Gold Price Outlook: Gold Collapses- Relief in Sight?

Michael Boutros, Strategist

Gold Technical Price Outlook: XAU/USD Near-term Trade Levels

Advertisement

Gold prices have collapsed more than 4% off the weekly high with XAU/USD now testing the first majors support zone of interest. The decline constitutes a break of the monthly opening-range and while the threat remains lower, the sell-off is may be vulnerable here at confluence downtrend support.

These are the updated targets and invalidation levels that matter on the XAU/USD technical charts heading into the close of a volatile week. Review my latest Strategy Webinar for an in-depth breakdown of this gold technical setup and more.

Gold Price Chart - XAU/USD Daily

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

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

Technical Outlook: In last week’s Gold Price Outlook we noted that the XAU/USD recovery remained vulnerable while below 1900 and to look for a reaction at key support at, “the 38.2% Fibonacci retracement of the yearly range / September low at 1837/48 with a break there exposing more a significant technical confluence at the 2012 high / 100% extension at 1790/1803- an region of interest for possible downside exhaustion IF reached.” Gold prices broke below lower early in the week with a decline of more than 3.5% now testing this key support zone – we’re looking for a near-term pivot here.

A break / close below 1790 is needed to keep the immediate short-bias viable with such a scenario exposing the 50% retracement at 1764 and critical support at the lower parallel / 100% extension at 1739. Daily resistance now back at 1848 with bearish invalidation lowered to the November monthly open at 1879.

Gold Price Chart - XAU/USD 120min

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

Notes: A closer look at Gold price action shows XAU/USD trading within the confines an embedded near-term descending pitchfork formation with the decline testing confluence support today at the lower parallel / 100% extension at 1803 – the immediate decline may be vulnerable while above this threshold but the threat remains lower while below the median-line / 1836. A break lower keeps the focus on 1784/90 backed by 1764 and 1739.

Bottom line: A break of the November opening-range low keeps the focus lower in gold prices – that said, the decline is now testing the initial key support objectives. From at trading standpoint, a good zone to reduce short-exposure / lower protective stops- be on the lookout for topside exhaustion ahead of 1836 on recoveries IF price is heading lower. Ultimately, we’re on the lookout for a low heading into the close of the month with December typically a supportive month for Gold prices. Review my latest Gold Weekly Price 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 - GC Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long Gold- the ratio stands at +3.69 (78.69% of traders are long) – bearishreading
  • Long positions are9.71% lower than yesterday and 1.34% lower from last week
  • Short positions are 14.64% higher than yesterday and 5.88% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Gold price trend may soon reverse higher despite the fact traders remain net-long

---

Active Technical Setups

- Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES