In the last few days, there hasn’t been much volatility on bullion as investors awaiting new market drivers. Only a clear climb above $1,930 would give new strength to the price, while although the bull trend seems to be in pause it is definitely not yet dead. We will have a weakness signal below $1,880, while the support level – and the first danger zone – for gold is at $1,850-$1,860, which is the low reached in late September. Equally, with no new stimulus, the price could remain in this major lateral phase for a while longer yet.
It could seem strange talking about a lateral phase with the borders so far apart (there are more than $200 between the September low at $1,860 and the August peak at $2,070), but this is just the consequence of the increased volatility that we have seen on all assets in 2020. Moreover, as previously mentioned, those significant intermediate resistance levels at $1,930 and $1,970, while $1,885 and $1,872 are the first support zones.
