gold

Technical Analysis – Gold clashes with hardened upside boundary

Posted on December 28, 2020 at 9:12 am GMT

Gold is in the process of confronting a fortified resistance zone from 1,896-1,907. This reinforced region comprises of highs, the 100-day simple moving average (SMA), the Ichimoku cloud and the overlapping descending trend line pulled from the all-time high. The horizontal blue Kijun-sen line and the mild downward slopes of the 50- and 100-day SMAs are promoting a more neutral-to-bearish picture. However, the bullish tone in the rising red Tenkan-sen line and the hiking 200-day SMA, as well as the [..]

Commodities outlook: can gold, oil and metals stay bullish in 2021?

Posted on December 24, 2020 at 2:46 pm GMT

It’s been an incredible year for commodities as the global pandemic has induced some historic moves in the prices of key commodities such as gold and oil. Growth commodities like oil and industrial metals, whose fortunes are more directly tied to economic performance, have rallied hard since March when markets were flooded with stimulus and look set to finish 2020 on a positive note. The safe-haven gold, which had been on the rise long before the pandemic, has not been [..]

Daily Market Comment – Brexit deal announcement imminent, pound up

Posted on December 24, 2020 at 9:57 am GMT

UK and EU on the verge of a historic post-Brexit trade agreement, pound advances Trump imperils stimulus deal, risks government shutdown But markets calm in thin holiday trade; dollar drifts lower, stocks edge up Brexit deal is ‘done’ Britain and the European Union appear to be on the cusp of agreeing to a historic post-Brexit trade pact, with officials reportedly working through the night to put the finishing touches to the 2,000-page text. Negotiators continue to thrash out the final [..]

Technical Analysis – Gold weakens despite the bullish picture in short-term

Posted on December 23, 2020 at 9:02 am GMT

Gold has had a bullish tendency in the short-term, climbing to a new six-week high of 1,906 before it slipped below the simple moving averages (SMAs) and the 23.6% Fibonacci retracement level of the up leg from 1,764 to 1,906 at 1,873. The %K and %D lines of the stochastic justify the buying pressure in the very short-term, while in trend indicators, 20- and 40-period SMAs are moving towards the current market price to the downside and the 100-period SMA [..]

Technical Analysis – Gold in a challenging situation within bearish channel

Posted on December 21, 2020 at 8:50 am GMT

Gold resumed its bullish momentum on Monday after Friday’s pause, ticking slightly above the 1,900 level. Technically, the short-term bias is viewed as positive given the strength in the RSI and the MACD as well as the bullish intersection between the red Tenkan-sen and blue Kijun-sen lines. However, for the precious metal to attract new buyers, it should close decisively above the roof of the descending channel seen around 1,920, where the surface of the Ichimoku cloud and the 50% Fibonacci retracement of the 2,079 [..]

Daily Market Comment – Dollar edges up amid the wait for elusive stimulus and Brexit deals

Posted on December 18, 2020 at 10:01 am GMT

Dollar selling eases as caution creeps in, but still set for big weekly losses The long wait for deals in Washington and Brussels takes edge off risk rally Stocks mixed, some volatility may lie ahead Dollar bears pause for breath as Congress in race against time The US dollar was attempting to end its week-long losing streak on Friday as doubts about how soon a stimulus deal in Congress and a Brexit trade pact between the UK and EU can [..]

Technical Analysis – Gold set for a close above 200-SMA and within cautious territory

Posted on December 16, 2020 at 10:24 am GMT

Gold is set to close above the 200-period simple moving average (SMA) in the four-hour chart, but there is some suspicion that the precious metal could soon quit efforts given the previous downside reversals around that line. The 1,865 former support zone is also under the spotlight and could develop into a resistance area in the short run, though the momentum indicators are currently challenging that scenario. The RSI is sloping upwards but has yet to reach its 70 overbought mark, the stochastics hold [..]

Daily Market Comment – Two deals in the making and a Fed dilemma

Posted on December 16, 2020 at 10:10 am GMT

US congressional leaders close in on a stimulus deal as talks continue Brexit chatter lifts pound amid rumours a trade deal is within grasp Dollar on the backfoot ahead of least predictable Fed meeting of the year Hopes rise for a deal in Congress Hopes are running high on Capitol Hill that a stimulus deal can be reached after reported progress on Tuesday. US political leaders are set to meet again later today as they inch closer to agreeing on [..]

Daily Market Comment – Pound jumps as Brexit deadline extended yet again

Posted on December 14, 2020 at 9:47 am GMT

Pound soars after Britain and the EU agree to continue talking Progress in US stimulus talks also lifts markets’ spirits, dollar sags But cause for caution ahead of Fed meeting, stocks up modestly UK and EU agree to go “extra mile” to get a deal After a bruising week, sterling was once again riding high on renewed optimism for a post-Brexit trade deal on Monday. UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen had set [..]

Technical Analysis – Gold hovers near 38.2% Fibo in descending channel

Posted on December 14, 2020 at 8:05 am GMT

Gold prices have been trading around the 38.2% Fibonacci retracement level of the up leg from 1,451 to 2,074.89 at 1,836 and the 20-day simple moving average (SMA) and have been in a descending channel since August 6. According to the technical indicators, the stochastic oscillator is dropping towards the oversold area, while the RSI is pointing slightly down in the negative territory. The moving averages are in a neutral-to-bearish mode, suggesting that the next move in prices looks more likely [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.