- Gold alternates profit and loss around the $ 1,900 area.
- The 100-day SMA near $ 1,870 maintains the monthly decline so far.
- Inconclusive price action in the dollar weighs on the yellow metal.
Gold prices They are trading without clear direction at the end of the week, although they do manage well to stay above or around the key $ 1,900 per ounce level.
In fact, gold is reversing two weeks in a row with gains after bottoming out at the multi-week lows near $ 1,850 in mid-September. On the other hand, a strong barrier of around $ 1,930 has been presented.
The precious metal, meanwhile, continues to keep an eye on US political developments, particularly headlines about a possible stimulus package to combat the second wave of the coronavirus pandemic, which is already hurting prospects for a global recovery. .
The better mood of the dollar throughout this week has also been weighing on demand for the safe haven metal. However, the dollar failed to extend the rally further and lost stability before the key 94.00 level when measured by the US dollar index (DXY).
Key Gold Levels
At time of writing, gold is shedding 0.11% to $ 1,906.59 and faces the next support at $ 1,882.60 (weekly low on Oct 14) followed by $ 1,873.05 (monthly low on Oct 7) and then $ 1,848.66 (monthly minimum of September 24). On the upside, a breakout of $ 1,933.28 (October 12 monthly high) would expose $ 1,992.63 (September 1 monthly high) and finally $ 2,015.65 (August 18 high).
Credits: Forex Street