Gold is trading within a narrowing wedge or triangle. According to technical textbooks, this pattern of near-symmetrical lower highs and higher lows implies a significant move is coming once the price of a troy ounce breaks above these barriers.
Where will XAU/USD go? It is trading above the 100 and 200-day Simple Moving Averages but has failed to break above the 50-day SMA. Momentum is marginal to the upside. Critical resistance awaits at $1,933, which has capped the price twice in October. A break above this level would free gold of downtrend support and the 50-day SMA. The next level to watch is $1,975. which held the metal down in September. Further above, $1,995 and $2,020 await XAU/USD.
Support awaits at $1,898, a support line in mid-October, followed by $1,875, a stepping stone on the way up earlier in the month. The next level to watch is $1,850, the low point in September.
Gold and Silver next two weeks:
Gold has been holding above the psychological handle of $1900 and also broke above previous resistance of $1,920, which signals buyers will come at value areas to target it upwards for $1,927-$1,935. Further news on stimulus may boost the rally to $1,955-$1,968.
Silver has been holding above crucial support of $24 and broke above $25 which signals further strength towards $26 and 26.90 Here it is important to hold above 50 Day EMA 24.50.
US Elections: Debates matter but how much?
President Donald Trump and Vice-President Joe Biden have had their last major event of the campaign – the debate. It has been regarded by all as a more civilized affair than the first clash. The incumbent has been trailing in pre-encounter polls. Have his reelection chances improved?
The second and final presidential debate was a far different affair than the prize fight in September. Relatively polite and respectful, well moderated by Kristen Welker, it provided voters with serious policy choices between President Trump and challenger Joe Biden on crime, immigration, the economy, the energy industry, and several other topics. Surprisingly heavy on political substance, there were zingers aplenty and quotes we will see repeatedly in campaign ads over the next twelve days. Can one debate change the trajectory of the election?
Trading Analysis Performance: 19.10.2020 to 23.10.2020
