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How Gold Price Could Trade in the Upcoming Week?

How Gold Price Could Trade in the Upcoming Week?

Investors will tune in multiple speeches of monetary policymakers; what moves markets in the upcoming week?

Key Data Releases in the Week ahead

On Monday, November 16, the market expects the Japanese GDP (Q3) read, and will tune in the RBA governor Lowe’s speech, the ECB president Lagarde’s and her deputy Guindo’s speeches with Fed members Mersch’s, Clarida’s, Haskel’s and Daly’s speeches, respectively.

On Tuesday, November 17, investors will find out about the US retail sales numbers of October, the US industrial Productions numbers of October, and will tune in the Bank of England governor Bailey’s speech, the ECB president Lagarde’s speech, Fed members Bostic’s, Daly’s, William’s speeches and the Bank of Canada governor Macklem’s speech.

On Wednesday, November 18, markets will follow the RBA governor Lowe’s speech, the UK, the Eurozone, and Canada’s inflation rates of October. Later on, traders will check the change in the US oil stockpiles and will hear Fed members Evans, Williams, and Bullard’s speeches, respectively.

On Thursday, November 19, eyes will be on the Australian unemployment rates of October, the ECB president Lagarde’s speech, the US initial jobless claims, and the Fed member Mester’s speech.

On Friday, November 20, markets will check the Japanese inflation rates of October, the UK GfK consumer confidence number of November, the Australian, UK retail sales numbers of October, and the Canadian Retail sales of September, and the Eurozone consumer confidence index of November.

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Gold - Daily Price Chart (October 8 – November 15, 2020)

Last week, the Gold closed below the 50-day SMA and settled in the current trading zone of $1,861- $1,921. The price failed on multiple occasions to a lower trading zone reflecting bears’ reluctance.

A daily close below the low end of the trading zone at $1,861 could send the price for a test of the monthly support level at $1,796.

On the other hand, a daily close above the high end of the zone at $1,921 may encourage bulls to rally the price towards the August 18 high at 2,015.

Gold- Four Hour Price Chart (October 29 – November 15, 2020)

On November 9, the Gold broke below the bullish trend line originated from October 29 originating from October 29 low at $1,859. The price rebounded from $1,850 and rallied eyeing a test of the high end of the current trading zone discussed on the daily chart above.

In conclusion, at present the Gold trades in a sideways move creating higher lows with lower highs however, a break below the upward trendline originated from the November 9 low at $1,850 may start a bearish bias and a break below $1,847 could send the price even lower towards $1,796 while a break above $1,966 may trigger a rally towards the September 1 high at $1,992. As such, the support and resistance levels underlined on the chart should be considered.

Esta información/estudio preparada por Mahmoud Alkudsi no tiene en cuenta los objetivos específicos de inversión, la situación financiera o las necesidades particulares de una persona. El analista de estudios es, principalmente, responsable del contenido de este informe de estudio, en parte o en su totalidad, certifica que los puntos de vista sobre las compañías y sus valores expresados en este informe reflejan con exactitud sus puntos de vista personales, y como consecuencia, toda persona que actúe basándose en ellos lo hace bajo su propio riesgo.

El estudio proporcionado no constituye los puntos de vista de JME Financial Services (Pty) Ltd., ni es una invitación a invertir con JME Financial Services (Pty) Ltd. El analista de estudios certifica, además, que ninguna parte de su remuneración ha sido, es o será directa o indirectamente relacionada con recomendaciones o puntos de vista específicos expresados en este informe.

A partir de la fecha en la que se publique el informe, el analista de estudios y su esposo/a o familiares que dependen financieramente de dicho analista, no mantendrán intereses en los valores recomendados en este informe (“como “intereses” se incluyen la titularidad directa o indirecta de los valores).

El analista de estudios no está contratado por JME Financial Services (Pty) Ltd. Le animamos a buscar asesoramiento con un consejero financiero independiente con respecto a la idoneidad de la inversión, en virtud de otra participación separada, cuando considere oportuno que es conforme con sus objetivos específicos de inversión, su situación financiera o, sus necesidades financieras particulares antes de comprometerse a invertir..

Las leyes de la República de Sudáfrica regirán cualquier reclamación relacionada o que surja de los contenidos de la información/estudio proporcionado.