Gold (XAU/USD) Analysis, Prices, and Charts

• The outlook for gold remains positive
• Busy week on the economic calendar.

The escalation of military action in Gaza continues to boost the price of gold, with the precious metal hitting a fresh five month high on Friday. The ongoing safe haven bid is set to continue and a re-test of resistance around $2,009/oz. is likely in the coming days.

Gold is likely to consolidate on either side of $2,000/oz. before testing higher levels. The chart remains positive with support seen between $1,987/oz. and $1,971/oz. (23.6% Fibonacci retracement), while the 20-day sma breaking through the 50-dsma highlights the recent strength of the precious metal. A confirmed break above $2,009/oz. should leave the $2,050/oz. level as the next level of resistance.

Gold Daily Price Chart – October 30, 2023

Chart via TradingView

IG Retail Trader data 57.31% of traders are net-long with the ratio of traders long to short at 1.34 to 1.The number of traders net-long is 3.36% higher than yesterday and 10.77% lower from last week, while the number of traders net-short is 7.44% higher than yesterday and 11.99% higher from last week.

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