A wedge pattern on the 4-hour chart hints at a potential reversal to 1,900.
Gold sends mixed signals ahead of the new week’s trading; a rally to 2,000 is possible.
Gold spiked significantly this week and brushed shoulders with 1,960. The instability witnessed in the stock market saw the precious metal used as a hedging asset. The rally to 1,960 was a continuation of the uptrend started towards the end of October. The days heading to the US election shined a light on the gold, catapulting it to nee monthly levels.
XAU/USD closed the week changing hands at 1,952 after embracing support at 1,950. Gold’s immediate upside is capped by the seller congestion at 1,950. Consequently, the formation of a descending channel adds credulity to the bearish narrative. Therefore, it is likely for the precious metal to crumble in the coming week, especially if the wedge pattern support […]
November 8, 2020 (updated November 8, 2020) Published by StockMan