Gold Price XAU/USD Braces for a Stormy Week Ahead

By: Miguel A. Rodriguez

09:31, 02 November 2020

Market’s week ahead Overview, key risk events, data releases, and Gold price technical analysis.

Key Data Releases in the Week ahead

On Monday, November 2, markets follow the Australian, Eurozone, UK, Canada, and the US manufacturing PMI numbers of October.

On Tuesday, November 3, eyes will be on the US all day as Americans will elect a new president for the next 4 four years and will renew half of the US congress. Additionally, markets will follow the RBA interest rate decision and Switzerland inflation rates of October.  

On Wednesday, November 4, investors will find out about New Zealand's unemployment rates of Q3, the Australian services PMI of October with retail sales of September. On the same day, markets will check China, Eurozone, UK composite PMI final numbers of October with the US non-manufacturing PMI, and changes in the US stockpiles.

On Thursday, November 5, traders will find out about the Eurozone retail sales of September, the Bank of England interest rates decision with the BoE governor Baily’s speech, and the Fed interest rate decision with the Fed press conference.

On Friday, November 6, markets check the RBA statement on monetary policy, the Canadian unemployment rate of October, the US non-farm payroll with the unemployment rate decision of October.

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Gold - Daily Price Chart (September 1 – November 1, 2020)

On October 21, the Gold rebounded from the slopping downward trendline originated from the September 1 high at 1,992 and closed below the 50-day SMA reflecting a weaker bullish sentiment. Therefore, the price slipped to the current $1,861- $1,921 trading zone.

A daily close below the low end of the trading zone at $1,861 could encourage bears to press towards the monthly support level at $1,796.

On the other hand, a daily close above the high end of the zone at $1,921 could send the price towards a test of the August 18 high at $2,015.

Gold- Four Hour Price Chart (October 7 – November 1, 2020)

On October 28, the Gold traded below the bullish trendline support indicating a shift in favor of bears control.

In conclusion, while the bearish bias is still in place a break above $1,897 may trigger a rally towards the high end of the current trading zone discussed above on the daily chart, while a break below $1,847 could send the price even lower towards $1,796. As such, the support and resistance levels underlined on the chart should be kept in focus.

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