CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Gold price technical analysis: turning bullish above $1,920

By Nathan Batchelor

20:06, 5 October 2020

Gold price technical analysis

Gold staged a notable recovery last week. President Trump testing positive for Covid-19 caused traders to move into safe-haven asset classes.

Gold price technical analysis shows that a rally towards $1,980 could take place if the $1,920 level is overcome.

Gold medium-term price trend

Gold staged a strong recovery above $1,900 last week, after the yellow metal suffered its worst monthly loss in more than 12 months.

Gold technical analysis shows that the $1,915 level is an important technical barrier that bulls need to overcome this week.

Gold price technical analysis

Bulls need to stage multiple daily price closes above gold’s 50-day moving average, around $1,915, to encourage medium-term buying interest.

If bulls overcome the $1,915 area then the $1,925 and $1,945 levels offer the strongest form of technical resistance.

The daily time frame also shows that an important rising trendline, around $1,970, is another viable upside target if the mentioned resistance areas are broken.

What is your sentiment on EA?

127.18
Bullish
or
Bearish
Vote to see Traders sentiment!

Gold

1,963.74 Price
-0.110% 1D Chg, %
Long position overnight fee -0.0185%
Short position overnight fee 0.0103%
Overnight fee time 21:00 (UTC)
Spread 0.30

Oil - Crude

71.01 Price
-0.070% 1D Chg, %
Long position overnight fee -0.0153%
Short position overnight fee -0.0066%
Overnight fee time 21:00 (UTC)
Spread 0.03

XRP/USD

0.53 Price
-0.310% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.00411

BTC/USD

26,493.25 Price
-0.670% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 60.00

Gold short-term price trend

Gold technical analysis shows that the metal only has a short-term bullish bias, while the price trades above $1,907. 

Lower time-frame analysis shows that a bullish inverted head-and-shoulders pattern has formed, following the recent recovery from the $1,840 area.

Gold price technical analysis

Technical analysis shows that the bullish reversal pattern will be activated if the price moves above the $1,920 resistance level.

According to the size of the bullish pattern, the price of gold could rally towards the $1,970 region over the short term.

Gold technical summary

Gold technical analysis shows that gold could surge towards $1,970 if bulls anchor the price above $1,920.

Markets in this article

Gold
Gold
1963.74 USD
-2.13 -0.110%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading