The green light is on for gold today as it gains back some of the losses from yesterday. As of writing, XAUUSD moves along the critical $1900 level and re-testing the $1880–$1920 breakout zone, dating back to 2011. Sell offs might be taken out of the picture, but the chart still marks a clear resistance at the $1950 level.
The markets might struggle to crawl higher as Biden leads the presidential polls. The rising possibility of a Biden victory has increased the Treasury yields as higher stimulus packages are expected. However, gold could still rise higher because of gigantic federal debts this year.
Outlook looks brighter for gold. The anticipated almost $2 trillion stimulus will add more to public debt and hammer the US dollar, which is beneficial for the gold markets. A break above the high on Monday at $1931 could kickstart a trend toward $1950, and eventually going forward to $2000.
Trade Gold This Week and Win from $500 Prize Pool
SimpleFX is running the $500 XAUUSD Trading Contest where traders can earn more while trading one of the hottest assets of the US election. To participate in the contest, just trade XAUUSD on SimpleFX this week, from October 12–18, 2020. A total of $500 will be given away!
To trade XAUUSD using the webtrader, follow these instructions:
Log in to the SimpleFX WebTrader. Then, search for the XAUUSD symbol on the search bar.
Click on the “New order” button at the bottom of the screen to open the new order window.
Fill in your order. Specify the number of units you want to buy or sell, and if you prefer, enter the Take Profit and Stop Loss levels. Then, click “Submit” to confirm your order.
Trade more on XAUUSD this week to cash in rewards. Good luck!