· Gold Price Analysis: XAU/USD teases inverses head-and-shoulders on 1H below $1,900
Gold prices print mild gains of 0.16% on a day while taking rounds to $1,882 during the pre-European session trading. In doing so, the yellow metal portrays an inverse head and shoulders bullish chart pattern on the hourly (1H) formation.
With the MACD flashing bullish signals, even if milder, odds of the quote’s upside break to the pattern’s neckline, at $1,887.60 now, become brighter.
However, a confluence of 200-HMA and a falling trend line from October 21 can challenge gold buyers around $1,892 afterward. During the metal’s sustained run-up past-$1,892, the $1,900 threshold holds the key to further upside.
Alternatively, $1,873 and the previous month’s low near $1,860 can act as immediate supports ahead of highlighting the September month’s low near $1,848.
While buyers are likely to return around the September bottom, any more weakness below the same might not refrain from challenging the early-July tops near $1,818.
· FXStreet Technical analysis
Considering the metal’s pullback from 100-day SMA, currently around $1,890, on Friday, Gold sellers are likely to remain hopeful of attacking lows marked during October and September, respectively near $1,860 and $1,849.
· With two days to go, Democrat Joe Biden holds a commanding national lead over President Donald Trump, but Trump has stayed competitive in the swing states that could decide the White House race.
· U.S. Senate Majority Leader Mitch McConnell on Friday said that any new coronavirus aid package should be considered in early 2021, possibly closing the door to such legislation shortly following Tuesday’s election.
· Europe’s new COVID-19 cases have doubled in five weeks, propelling the region on Sunday to cross the milestone of 10 million total infections, prompting countries such as Britain and Portugal to enact fresh lockdowns.
· Speculators cut their net long position by 3,702 contracts to 131,609 in COMEX gold in the week to October 27, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Reference: CNBC, FXStreet
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