- Summary:
- Gold price on the XAUUSD pair trades higher this Wednesday, but upside move remains capped as conflicting fundamentals hit the US Dollar.
Gold price action on the XAUUSD chart shows a slight recovery in gold prices, on the back of intraday USD weakness. The weakness on the USD was prompted by downbeat durable goods orders. The Durable Goods Orders for November 2020 rose 0.9%, which was less than October’s rise of 1.9%. The core component of the report also showed a rise of 0.4%, which was less than the previous reading of 0.8%.
The threat by US President Donald Trump not to sign the stimulus is capping gains in gold price, as a number of competing fundamentals continue to hit the markets in the last major trading day for the week.
Technical Outlook for Gold Price
Gold price has met intraday resistance at 1881.99, with a slight pullback that now targets the 1869.39 support. Price would need to clear 1900.76 to re-establish the uptrend via a higher high above Monday’s peak. This move has to take out 1881.99, and aim for 1918.68 at the first instance, with 1940.15 and 1954.77 also lining up as potential upside targets. This move would have to clear the channel’s upper edge to succeed.
On the flip side, a retreat from present levels that takes out the 1869.39 support, targets 1850.78. This move requires a break of the trendline that connects the lows of 30 November and 14 December and 23 December. If this trendline gives way, 1821.55 and 1800.34 could become new downside targets, even as price aims for the lower border of the larger channel.
XAUUSD Daily Chart
