- Summary:
- Gold price continues to trade within the symmetrical triangle on the XAUUSD daily chart; caught in between two possible outcomes.
Gold price has recovered slightly from its intraday lows at 1891.54. Presently, there is a lot of risk on both sides of the equation. There is still no stimulus deal, and as move closer to the US election, the latter could assume greater importance in the scheme of things, with regards to US Dollar direction.
The conclusion of the US election on November 5 is also not assured. There has been a record number of early votes cast. As at Friday, 54 million votes had come in, and another 100 million ballots are expected on November 3. With US President Trump opening the door to a court contest of election results in the 1st debate, gold prices could be in for an uncharted ride in the days ahead.
Without any clear direction in the market fundamentals, traders may have to deal with technical plays for the time being. However, a stimulus deal before election day could still impact the XAUUSD pair significantly. But until then, traders may continue to clutch at straws.
Technical Outlook for Gold Price
Gold price is pushing hard at a violation of the lower boundary of the symmetrical triangle. Confirmation of the breakdown requires at least two successive daily candles closing below this border, as well as the 1900.76 support.
So far, we are yet to see any of these. As it is the active daily candle shows a rejection of the violation by buyers, forming a hammer that rests on the 1900.76 support. This makes a case for gold price to push upwards towards the opposing triangle edge, which intersects the 1918.68 resistance. If price opts to break this border instead, a push towards 1940.15 or 1954.77 cannot be ruled out.
On the flip side, 1869.39 is the first target for sellers if the triangle gives way to selling momentum. A further decline brings in 1821.55 into the picture.
Gold price, therefore, remains caught between two worlds. A resolution of the situation appears possible this week.
XAUUSD Daily Chart
