XAUUSD: Gold Prices Could Slide to $1415

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Written By: Alejandro Zambrano

Oct 01, 2019, 10:44 BST 10:44

Gold prices

Summary:

Gold prices (XAUUSD), could not stand the pressure of the US Dollar and the price might now decline to the 1415 level over the weeks ahead. Read more.

Gold prices (XAUUSD), could not stand the pressure of the US Dollar and the price trend turned bearish in yesterday’s trading session. The price is now bearish below yesterday’s high of $1502, and per the head and shoulders pattern, I reported on Friday the price might now decline to the 1415 level over the weeks ahead.

If gold prices were to revisit the September 10 low at $1483.61, I suspect that traders will see this as an opportunity to short-sell XAUUSD. However, if the price manages to establish itself above the September 30 high of $1502, I suspect that trades will be quick to abandon their bearish outlook.

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The next key data point for Gold prices is this afternoon’s US ISM report. The index slid to 49.1 in August and is anticipated to increase to 50. If the index would gain more than 50 then it could weaken gold further, while a lower reading than 50 might send gold prices upwards, however, gold prices still need to break above the yesterday’s high to end the short-term downtrend.

What is our long-term outlook on gold prices? Download our free Q4 outlook today.

Written By: Alejandro Zambrano

Alejandro Zambrano combines extensive professional experience and a pragmatic attitude to trading, building clients’ understanding of the markets and the rationale behind investing. Zambrano was the Chief Market Strategist of the FCA regulated broker, Amana Capital. Prior to that, he was also the Head Analyst at FXCM’s London research desk. Interact with Alex via Twitter at @AlexFX00.