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19 Oct 2020
Gold Price Analysis: XAU/USD gains 0.18%, looks to re-enter rising channel
- Gold picks up a bid, probes the lower end of a rising channel.
- Failure to retake bullish channel could invite stronger chart-driven selling.
Gold is currently trading at $1,902, representing a 0.18% gain on the day.
Having picked up a bid at $1,897 early today, the yellow metal is now looking to re-enter the bearish channel represented by trendlines connecting Sept. 28 and Oct. 7 lows and Oct.2 and Oct. 12 highs.
If followed by a move below the session low of $1,897, a failure to retake the bullish channel would confirm an end of bounce from the Sept. 28 low of $1,848 and open the doors for a fresh sell-off.
Alternatively, a break above Friday's high of $1,913 would validate the bullish reading on the daily chart MACD histogram and shift the focus to the 50-day simple moving average (SMA), currently at $1,924.
Daily chart
Trend: Neutral