- Summary:
- Gold prices on the XAUUSD charts rise to 1-week highs on weaker greenback, as investors prepare for the much-awaited US Presidential Debates starting today.
Gold prices have attained 1-week highs as the U.S. Dollar remains weaker on the day. One of the news that investors are watching this Tuesday is the much-awaited 1st U.S. presidential debate. This debate will feature questions that will task both contestants on the coronavirus pandemic, the proposed coronavirus stimulus relief package and other topical issues.
The greenback remained weak in Tuesday’s trading, allowing the spot gold prices to jump 0.63% on the day, taking the XAUUSD to 1892.44. The yellow metal had hit intraday highs of 1892.96 but has retreated slightly.
With five weeks until the U.S. Presidential Elections, President Donald Trump and Democratic nominee Joe Biden will square off in the first of three presidential debates, starting at 9 pm EST on Tuesday.
Technical Outlook for Gold Prices
Following the breakdown of the descending triangle as outlined in my previous analyses on the pair, the XAUUSD price bars are now in a pullback mode, having found support at the 78.6% Fibonacci retracement level of 1850.29.
However, gold must overcome the resistance wall formed by the 1900.76 price level to target 1918.68 and possible 1932.32 (50% Fibonacci retracement) levels. Other targets to the north are at 1950.00, 1966.16 and 1980.74.
On the flip side, rejection at the resistance wall close to 1900.76 may allow sellers to come back into the fray, driving prices towards the 1850.29 and 1821.61 support levels. The impetus for this move will come from a strengthening of the greenback.
XAUUSD Daily Chart
