Gold: Narrowing Range, Cautiously Bullish
George Lam September 14, 2020 11:58 AM
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.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.