Gold is likely to trade around the $1,900 level until the U.S. election or a stimulus agreement, according to MKS PAMP Group. “Gold prices continue to fluctuate as investors weighed the better than expected economic data against the stalled U.S. stimulus talks.
The metal continues to be centered around $1,900 for the time being, with a general lack of direction and momentum,” MKS writes. Investors should be looking at technicals to figure out gold’s next price move, MKS adds. “Over the past few weeks, we have seen a number of attempts at the $1,920-30 region, however it always ends up falling back off. That said support between $1,875-95 has been robust, the metal happily floating in a wedge between the 50 dma on the topside (currently at $1,921 on a daily chart) and the 100 dma on the downside (currently $1,883.50 on the daily chart). This is closing in, so we are looking for a clear break of one of these levels in a technical sense to gauge the next direction. We do not see this happening before the U.S. election or a stimulus agreement however and look to play the range for the meantime.”