Surging coronavirus cases and a stalemate in Washington over the next fiscal aid bill darkened the economic outlook in the run up to Nov. 3 presidential elections.
GOLD: reverse from the channel bottom?
2020-10-15 • Updated
Gold reached $1 930 at the end of last week. The question back then was whether it would break the roof of the channel or reverse to get to its bottom. It reversed. On Tuesday, it was at $1 890 testing the bottom of the channel. Although it made a spike above $1 910, it got back to the trend’s lower border. So the question now is: will it get back up to cross $1 930 and hit the other side of the channel? Very possibly, but we need to confirm the bullish reversal first.
Going above $1 900 and crossing the 50-MA would be the first step. Passing $1 910 on the way upwards would be the second step. Finally, testing $1 930 would be the third step to expect a new local high – probably at $1 950. So watch those three steps and make sure you are on the ride side of the trend.
Gold moves to the 23.6% retracement level. It seems that gold loses strength under the current risk-off mood.
Global stocks barely budged on Friday as investors tightened positions with less than two weeks to go before the U.S. presidential election and awaited a breakthrough in stimulus talks in Washington.
Gold is trading sideways around the $1 900 level, but Biden’s victory will drive it upwards.
U.S. stock markets are set to open with a modest bounce after their worst day in over a month on Monday.
Asian equity markets resumed the weak performance seen across global peers which culminated in Wall St’s worst day in over a month