XAU/USD is trading in the green. It may reach new highs as the USD goes down ahead of the FOMC and before the presidential elections final results will come out.
The fear that the Fed will announce new stimulus measures to help the US economy to recover activates a risk-on sentiment. Gold remains an attractive safe-haven asset, the COVID-19 crisis continues while the global risk could increase again, so the yellow metal should increase.
GOLD Still In The Buyer's Territory!
Gold decreased but it found support at the confluence area formed at the intersection between the black downtrend line with the lower median line (lml) of the ascending pitchfork.
It retested the Pivot Point ($1,883) level. Now it is trying to consolidate above the R1 ($1,906) level. XAU/USD is trapped between the lower median line (lml) and the median line (ml), so a valid breakout above the median line (ml) and through the R2 ($1,934) brings a great long opportunity.
- XAU/USD Trading Conclusion
Gold is likely to go up as long it stays above the $1,862 and within the ascending pitchfork's body. A valid breakout above the median line (ml) and above the R2 suggests buying with a first upside target at the upper median line (uml), at the $2,000 psychological level.
