Gold gains alongside stocks as the dollar slips
Gold is keeping in a good spot as buyers are holding gains above $1,900 but from a technical perspective, there is more work to be done for the upside momentum to continue beyond the gains so far today.
The push higher comes largely on the back of dollar weakness but gold is now facing some key resistance levels with the big one being the trendline resistance from August to September, seen at $1,911.75 currently.
Besides that, the recent highs around $1,917 to $1,921 is also posing some short-term resistance for gold buyers ahead of the close today.
Keep below those levels highlighted and sellers are still ‘in the game’. But break above them, and buyers will be able to look for more upside potential going into next week.
As things stand, the dollar side of the equation is taking on a big focus with US stimulus talks and election odds taking center stage this week. The latter will stay the course over the next few weeks and gold is likely to trade in tandem with risk as such.
Looking at the chart above, if gold buyers can manage a firm close above $1,921 then that helps to establish a platform for a potential push back towards the mid-September highs around $1,966 to $1,973 potentially.
As for sellers, keeping below the above resistance levels will be the first key step before trying to go in search of a push back below $1,900.
Further support is then only seen closer towards the 100-day MA (red line) @ 1,862 and then the $1,850 level as seen from the September lows.