- Summary:
- End of the month money flows have put the USD under pressure in the New York session, allowing gold price to climb to the 1900 psychological area.
Gold prices continued the recovery today after the end-of-the-month money flows put the Greenback under pressure during the New York session. This allowed the XAUUSD pair to climb towards 1900 on the day. Gold prices attained intraday highs at 1.902.32, but failed to progress further as price action for the day met strong resistance at the 1900 psychological area.
Investors were generally cautious of the day as the US Presidential debates failed to produce any exact direction or policy which would have dictated market sentiment. However, positive US economic data in terms of the ADP employment change and a final GDP reading that was slightly better than the markets had expected, had given the USD a head start for the day. However, end of the month flows for September, which also coincides with the last trading day of the 3rd Quarter of 2020, so cute allowed good prices push towards intraday highs.
Technical Outlook for Gold Prices
A look at the 4-hour chart gives some perspective as to the possible price action in the short-term. After forming a double bottom earlier in the week, prices continued above the neckline of this pattern and targeted the 1900 psychology area, which dapped price activity today. Any price moves above this area require some follow-through buying by the bulls. If this occurs, We could see a price push to 1918.68, with further resistance seen at 1940.15 and possibly 1954.77.
On the reverse side, failure to break above 1900 allows Good price to pull back towards 1869.39, with a possible extension of support levels towards 1850.2. Additional support may be seen at 1821.55.
Gold Price Chart (Daily)
