😮😮🌟🦹♀️Technical outlook
Bullish scenario
The Gold is down 9.50% from the November’s high and 5.4% from the October close price. Currently the XAUUSD is trading slightly above the strong support level of 1770 usd per ounce as it bounces from it earlier in the day /30.11.2020/. The way the price fall to the above-mentioned support was sharp and pretty much without any significant correction. With all that into consideration if the price closes above 1770 support and it holds in the next day US session then we may see the bulls trying to drive the gold to 1800 resistance. If 1800 is breached and the price stays above it for two days, then 1850 resistance will be on the way.
Bearish scenario:
The zone between 1770 and 1740 is a “No Mans’s Land” for Gold. But if the price falls below 1740, then the chances to see the level of 1690 should be pretty high.
Fundamentals:
We are in the last quarter of the year and a lot of fund managers will rebalancing their portfolios.
To sell an asset which made approximately 25% return in the last three quarters and does not pay cash flow and buy the equity market with still so money undervalue companies does looks like a good plan for the big guys. What we are seeing so far from the markets it seems that they are doing just that. So, a lot of volatility is on the horizon for gold and both technical scenarios should be watched closely.