GOLD PRICE WEEKLY TECHNICAL FORECAST: NEUTRAL
- Gold gravitated 1% decrease and silver slid 3% final week because the shiny commodities give again positive aspects
- Valuable metals appear broadly supported by upward pressures regardless of current headwinds
- Gold worth motion may proceed oscillating within the absence of a wanted bullish catalyst
Gold costs stay turbulent with bulls and bears battling over the path of valuable metals. The final 5 buying and selling periods steered the worth of gold and silver decrease on stability by 1% and three% respectively. This marks the primary weekly decline for gold and silver because the shiny commodities primarily based mid-September. That stated, gold worth volatility is to be anticipated amid massive swings within the USD and actual yields just lately.
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GOLD PRICE CHART: DAILY TIME FRAME (15 MAY TO 16 OCT 2020)
Chart by @RichDvorakFX created utilizing TradingView
A reduction bounce off the $1,865-price degree and 100-day easy shifting common despatched gold recoiling again greater, however the rebound was undermined by prior support-turned-resistance. The intensifying Bollinger Band squeeze highlights gold costs consolidating sideways between these important technical limitations. Additionally, that is probably a results of gold coiling throughout the confines of its medium-term bearish and short-term bullish trendlines.
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To be clear, headwinds lingering over gold and silver for the final two months may maintain pushing the dear metals decrease, however outlook nonetheless seems constructive extra broadly. Gold worth motion might be susceptible to a breakdown towards the $1,800-handle if bears make a push under $1,865/oz. This state of affairs grows extra probably within the making an attempt absence of a wanted bullish catalyst. Alternatively, the dear metallic has potential to renew its parabolic rally with a transfer again above $1,930/ozas this may open up the door to the psychologically vital $2,000-price degree and past.
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
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