Gold (XAU/USD) is on the rise, trading above the $1,900 level it has been battling in recent weeks, but the yellow metal’s upside scope is limited after China Q3 Gross Domestic Product (GDP) disappointed the market, FXStreet’s Dhwani Mehta reports.
Key quotes
“Gold looks to extend its month-long range play between $1850-$1950, as the broader market sentiment and the dollar dynamics will continue to play out.
“Sellers continue to lurk above $1900, especially after the Chinese Q3 GDP miss disappointed market and put a fresh bid under the dollar. China’s annualized Q3 GDP arrived at 4.9% vs. +5.2 expectations and +3.2% last. The downbeat data negated the optimism over a new US fiscal relief aid and virus vaccines.”
“To the topside, the confluence zone of the falling trendline resistance and bearish 50-daily moving average (DMA) around $1915-20 remains a tough nut to crack for the XAU bulls. On the other hand, the critical 100-DMA support at $1873 needs to be cleared to unleash further declines.”
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