Gold: Narrowing Range, Cautiously Bullish
George Lam September 13, 2020 9:58 PM
Spot gold has been trading within a narrowing range in the last few weeks, ahead of the upcoming Fed FOMC meeting...
Spot gold has been trading within a narrowing range in the last few weeks, after volatile trading in early August. Pharmaceutical giant AstraZeneca and the University of Oxford said clinical trials for their coronavirus vaccine AZD1222 have resumed in the UK, following confirmation by the Medicines Health Regulatory Authority that it was safe to do so.
While gold prices have been dragged by vaccine development, investors continue to expect the Federal Reserve, which will hold a two-day monetary policy meeting mid-week, to keep its dovish stance.
From a technical point of view, spot gold maintains a bullish bias as shown on a daily chart. It is trading within a symmetrical triangle pattern, while support is provided by the ascending 50-day moving average. The level at $1,900 might be considered as the nearest support, with the 1st and 2nd resistance likely to be located at $2,015 and $2,075 respectively. Alternatively, a break below $1,900 would suggest that a deeper price correction is due and open a path to the next support at $1,865.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.