Gold Price Forecast (XAUUSD) – Chained by a bearish engulfing candle, real US yields.

Gold analysis, price and chart (XAU / USD)

• Gold under increased downward pressure.
• Monday’s elimination candle will curb any bullish intention.
• Client sentiment is bearish.

Gold remains under pressure despite a small recovery from Monday’s low of $ 1,850 / oz. The precious metal shed in excess of $ 100 / oz. at one point yesterday, when risk markets made a big deal for Covid-19 news about vaccines. Traditional safe-haven assets, including gold, fell victim to the rush for risk, with the the precious metal wipes out six-week gains in one session. The US dollar also lost some of its value-haven attractive, but rising US Treasury yields and declining real US yields. heavy in gold.

Closely followed 10-year US Treasuries returned 0.94% on Monday, a new eight-month high, investors say abandoned safe haven assets. Performance on the 10-year benchmark was also under pressure from dealers and Investors push price / yield higher ahead of major US 3, 10 and 30 year bond auctions this week. Yesterday $ 54 billion 3-year notes were traded, today investors will be offered $ 41 billion 10-year notes, wWhile on Thursday $ 27 billion in 30-year bonds will be sold. Rising US Treasury Yields Yields narrow / turn less negative, a new bearish setup for gold.

The daily chart for gold shows a large bearish engulfing candle made on Monday, erasing most of the six-week gains. This candle will crimp further to the upside and may cause further falls in the precious metal. The downside should find initial support around yesterday’s low at $ 1,850 / oz. which lines up with the double bass print in late September. Down here, the 38.2% Fibonacci retracement at $ 1.836 / oz. before the 200-day simple moving average at $ 1,819 / oz. Initial resistance around $ 1,900 – $ 1,905 / oz. outside of the large and the small figure of 20 and 5 days.

Gold Price Daily Chart (March – November 10, 2020)

I G retail trader dataShow 87.93% of traders are net long with the ratio of long to short traders of 7.29 to 1, a bearish counter sign. TThe raders are longer than yesterday and last week, and the combination of current sentiment and recent changes gives us a Stronger gold bearish counter trading bias.

What is your opinion on Gold – Are you bullish or bearish? You can inform us through the form at the end of this article or you can contact the author through Twitter @ nickcawley1.