FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
96,051,820Confirmed
2,050,554Deaths
68,718,123Recovered
Fetching Location Data…
Advertisement
Advertisement
Aziz Kenjaev
Comex Gold

The hardest to react to such an increase of the US Dollar index was Bitcoin losing 20% yesterday. Gold was stable yesterday and didn’t show signs of a bearish reversal amid a sudden surge of Covid-19 cases in China.

The US Dollar Dollar index set so far the lowest point on January 06 this year at 89.391 and was able to recover and breakout from the descending downtrend channel of November 02, 2020.

Advertisement
Know where Gold is headed? Take advantage now with 

75% of retail CFD investors lose money

DXY chart by TradingView

If the US Dollar closes above 90.720 it might show one of the sharpest jumps up to 92.100 after testing a resistance at 91.120.

The gold chart below shows that the precious metal is back in the descending channel. As seen on the chart the further uptrend of XAU/USD was denied by the MA200. This Moving Average on the chart signalled the bearish continuation, examples are September 10, 15-16, October 09, November 16 and December 08 of 2020. Hence, Gold needs to close above this MA200 to continue the uptrend.

Gold price on Overbit

By the time of writing this article, XAU/USD quote on Overbit is $1845 per ounce and remains above the dynamic support and the neckline of the previously confirmed Head and Shoulders pattern, see the pink line on the chart below.

Gold price on Overbit

While Gold remains above this dynamic support, it still holds all the chances to continue bullish. The first resistance Gold will face when closing above the MA200 is $1880. The bullish run of XAU/USD is also supported by RSI and MACD indicators, however MACD hasn’t crossed the signal line yet, although is very close to doing so.

If Gold closes below the dynamic support it will drop towards $1817 and below that to $1780. The US JOLTS Job openings as per November announced just now 6.527M, higher than the forecasted 6.632M and the previous month’s 6.494M, this data signals the recovery and could trigger investors to bet on the US Dollar rather Gold.

Another important data from the US which Gold investors should trace is tomorrow’s CPI and Core CPI. Forecasts are mixed, while the MoM CPI as per December is expected to surge and be at 0.4%, Core CPI (MoM) as per December is expected to fall and be at 0.1%. While the JOLTS Job Openings look positive and announced numbers are higher than expected, the CPI data could be more positive as well.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US