Wednesday, November 18, 2020

GOLD Analysis - Will Prices Drop Even Lower?

 Gold trading this week did not please the investors with the price movement seen as flat looking for a clearer direction.


Market sentiment is still mixed between developments in vaccine trials and an increase in outbreaks of the Coronavirus.


Should reports on vaccine developments continue to be slow and bleak as the increase in virus outbreaks continues, investors will start turning to safe-haven assets.


Gold prices initially showed an increase in trading today after the initial decline in prices in the Asian session tested the support level of 1875.00 on the XAU / USD chart.


The price is still showing an increase in the European session and will test the Moving Average 50 (MA50) barrier face on the 1 hour price movement.


The price which is still moving below the 1900.00 level makes the investor expect the price to fall to a lower level.


The price support parcel of the downside is seen at the 1850.00 support tested at the initial price drop last week.



However, if market sentiment is increasingly at risk, the price of gold continues to rise, the price that passes the 1900.00 face will also test the resistance zone around 1910.00.


Advances higher will be ahead of the hurdle in the 1938.00 SBR (support become resistance) zone before moving on to the 1960.00 resistance