Gold/USD Price forecast | 09 October, 2020 | Weaker dollar pushes Gold up and helps bullish technical outlook
Gold Price Forecast relative to
Long Term Monthly (LT-M) – Medium Term Weekly (MT-W) – Short Term Daily (ST-D) – and Hourly (not shown) data.
(Previous week in brackets)
|Au Trend||↓ (↓)||↓ (↓)||↑ (↑)|
|Au % Risk
|80 (80)||46 (52)||52 (37)|
Total allocation 50% (50%)
Gold/USD live price
02 October:: Bulish divergence between daily and Long term timeframes pushed the market up above 1900 and closing around that handle. Technically Gold looks a little under the weather, but we still have not seen a bearish divergence Risk to Price that would call for a possible longer term correction unfolding after the 5 year broader advance from that dec 2015 low at 1086. So, we will wait for that divergence to manifest which will be months away at the earliest. Gold/USD Quarterly Risk to price show the following picture with the 1st quarterly all time high close since Sep 30 2012 at 1776.
No Change to asset allocation
Gold/Euro live price
09 October:: Gold vs Euro shows a very similar pattern as against USD. A strong hold.
02 October:: Gold still looks more vulnerable against Euro, but the expected technical picture after 5 years of unfinished business is for a strong bearish divergence after a very strong price rally. That hasn’t happened yet. The Eur/USD exchange rate fluctuation will continue to blur the gold trend analysis somewhat and we look to follow the Gold/USD price as ‘the’ leading indicator until the status of World reserve currency takes a different corner.
Gold/British Pound live price
09 October:: Gold/GBP looks technically well supported. No change.
02 October:: A very similar story for Gold/GBP as for EUR. As our GBP/EUR exchange rate guidance is still bearish in this high volatility environment Gold/GBP should also remain a core holding for Sterling based investors.