Gold reveals new pattern

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The price for gold has broken the channel up pattern that guided the commodity up throughout October. The surge almost amounted to a total of $200.

After breaking the ascending channel, the metal has revealed a resistance zone at 1,890.85/1,997.15 and a supporting trend line that connects this week's low levels. Combined these levels form a triangle pattern.

Economic Calendar Analysis



On Friday, the US Core PCE Price Index data will impact the value of the US Dollar. The US monetary policymakers watch the Personal Consumption Expenditures data to adjust their policy. The data shows inflation at the consumer level. Namely, how the average person has been impacted by the inflation during the last month.

XAU/USD short-term forecast

A breaking of the resistance zone would first face the 2,000.00 mark, before the commodity approaches the historical high levels at 2,040.00 and 2,048.20.

However, a decline is set to look for support in the 50 and 100-hour simple moving averages, the 1,980.00 level and the ascending trend line. In the case of these levels being broken, the price could aim at the 1,970.00 mark and the 200-hour simple moving average.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the price has passed above the descending trend line and the 200-day simple moving average. Moreover, the 1,950.00/1,965.00 range has been broken and appears to have turned into support. The metal has to break the 2,000.00 mark to reach the high level zone at 2,065.00/2,080.00.

Daily Candle Chart


Gold traders are short

On Friday, the Swiss Foreign Exchange, traders were 59% short on gold, as that proportion of open Gold positions were short.

In the meantime, pending orders in the 1000 point range around the current price are 67% to buy.

Last week, traders were neutral. The weeks before that, traders were mostly long. It appears that Dukascopy traders have gained major profits from the surge that occurred from 1,900.00 levels up to 2,000.00, but expect no further gains.

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