Gold traded to a high of $1902.93 today, a gain of 0.18%. However, how will it hold up at these levels. $1,897 representing a key level of support. A failure to come bounce back from here could see the yellow metal take another tumble to September lows of $1,848. With little to no news to come out which will negatively impact the financial markets, a bullish rally seems unlikely for gold.
One key factor which needs to be pointed out is the stimulus package coming out in the US. Followed by the US election, we can see the stimulus become a needed support for gold due to the increased jobless claims which we can only expect to rise in the coming months. With this we can see a move north but nothing like we had in August.
Failing to hold above $1,897 could see the bearish pressure form for the XAU/USD. A break bellow here consider a target to it’s next key support at $1,875 followed by 1,848 Septembers low.
On the upside look for resistance at 1,920 followed by $1,950 and $1,982.
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