Gold setting up to attack the $2,000 level

  • XAUUSD
    (${instrument.percentChange}%)


Gold is currently trading around $1,990. The $2,000 level (red horizontal) is proving to be a significant psychological resistance level for XAUUSD. However, there are signs that the precious metal is preparing to break above this.

Firstly, underlying momentum is improving to the upside. The RSI has broken above its green trendline at 1. The indicator is now trading above the key 50 level, which indicates a bullish underlying momentum. The longer it maintains above 50, the more the underlying momentum will be price supportive.

In cooperation with the RSI breakout, the precious metal moved above its 30-week EMA and the EMA has turned up at 2. A moving average is a trend-following indicator, and the positive direction of the EMA bodes well for gold. This is supported by the DMI, where the green positive DI has crossed above the red negative DI at 3. Further divergence here will be positive.

The yellow metal has currently charted a higher trough (HT). If it can follow through with a higher peak (above black dashed horizontal), it will be above the $2,000 and will be in a defined uptrend, as per peak and trough analysis.

Trade the News: View our Economic Calendar

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.