Will Gold (XAUUSD) Reach $2000?

Technical Bias: Neutral/Bearish

Key Takeaways

• Broke above previous 2011 all times highs
  
• Major divergence between Gold and DXY ( in orange)
  
• RSI Overbought
  
• Fed Meeting on Wednesday
  

Technical Analysis
Ever since we broke above $1800 there hasn't been any stalling action as the COVID19 contagion continues in the U.S. Last Friday we managed to break the $1900 handle and hold above. Since the Sunday open Gold has continued to strengthen adding an additional $41 to its bullish trend.

We do have some major GBP data this week on the economic forefront that we should monitor as it could add some further upside or potentially be a catalyst depending upon the results. Wednesday we have a major market mover which is the FOMC. Interest rates are expected to remain at 0.25% but the press conference that follows the meeting might stir up existing trends.

Trade Idea
I always like remaining on the sidelines as we approach major risk events such as the FED. I will however keep a close eye on XAUUSD as we get closer to the FOMC meeting. For now I'm remaining neutral but will continue to monitor the momentum in the search of a decent short selling opportunity.

Regards,
Michael Harding

RISK DISCLAIMER
Information and opinions contained with this video are for educational purposes only and do not constitute trading recommendations. Trading Forex on margin carries a high level of risk and may not be suitable for all investors.