Gold Price Forecast: XAU/USD remains poised for additional gains, $1973 in sight
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER
- Gold rises with risk-flows amid a split Congress and a Biden win.
- US dollar least favored amid stimulus hopes, policy continuity.
- $1973 is the level to beat for the XAU/USD bulls.
After the spectacular 4% rally last week, Gold (XAU/USD) started out a fresh week on a strong footing, holding close to the highest levels in two-months above $1960 this Monday. American media networks called a Biden victory in the presidential election over the weekend, which sent the risk assets spiraling through the roof despite a split Congress already priced-in by the market.
Markets believe that a divided government could likely refrain from the regulatory changes and higher taxes while the President-election Joe Biden could push for additional fiscal stimulus, with a deal most likely seen in December. The Fed is also anticipated to do more to support the economic recovery. Therefore, with more funds in the market, the inflation-hedge gold is likely to benefit, strengthening the recent bullish case.
Although the rising coronavirus cases globally, with the total tally topping 10 million in the US, remain a cause for concerns, which could limit the downside in the safe-haven US dollar, in turn capping the gains in the yellow metal. The sentiment on Wall Street will also remain in focus for fresh gold trades.
Gold: Short-tern technical outlook
Hourly chart
The path of least resistance for the bright metal appears to the upside. However, the rising wedge hurdle on the hourly chart at $1965 remains a tough nut to crack for the XAU bulls.
A sustained move above the latter could open doors towards September 18 highs of $1973.64. Acceptance above which could bring the $2000 level back in sight.
The spot trades above all the major hourly moving averages (HMA) while the Relative Strength Index (RSI) trends higher at 64.47, suggesting that the bullish bias remains intact.
To the downside, the bulls need to defend the 21-HMA at $1954, below which the rising trendline support at $1947 could be tested. Further down, the upward-sloping 50-HMA at $1941 also remains on sellers’ radars.
- Gold rises with risk-flows amid a split Congress and a Biden win.
- US dollar least favored amid stimulus hopes, policy continuity.
- $1973 is the level to beat for the XAU/USD bulls.
After the spectacular 4% rally last week, Gold (XAU/USD) started out a fresh week on a strong footing, holding close to the highest levels in two-months above $1960 this Monday. American media networks called a Biden victory in the presidential election over the weekend, which sent the risk assets spiraling through the roof despite a split Congress already priced-in by the market.
Markets believe that a divided government could likely refrain from the regulatory changes and higher taxes while the President-election Joe Biden could push for additional fiscal stimulus, with a deal most likely seen in December. The Fed is also anticipated to do more to support the economic recovery. Therefore, with more funds in the market, the inflation-hedge gold is likely to benefit, strengthening the recent bullish case.
Although the rising coronavirus cases globally, with the total tally topping 10 million in the US, remain a cause for concerns, which could limit the downside in the safe-haven US dollar, in turn capping the gains in the yellow metal. The sentiment on Wall Street will also remain in focus for fresh gold trades.
Gold: Short-tern technical outlook
Hourly chart
The path of least resistance for the bright metal appears to the upside. However, the rising wedge hurdle on the hourly chart at $1965 remains a tough nut to crack for the XAU bulls.
A sustained move above the latter could open doors towards September 18 highs of $1973.64. Acceptance above which could bring the $2000 level back in sight.
The spot trades above all the major hourly moving averages (HMA) while the Relative Strength Index (RSI) trends higher at 64.47, suggesting that the bullish bias remains intact.
To the downside, the bulls need to defend the 21-HMA at $1954, below which the rising trendline support at $1947 could be tested. Further down, the upward-sloping 50-HMA at $1941 also remains on sellers’ radars.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.