Gold (XAUUSD) reversed upwards, securing above 2,600 USD

XAUUSD prices formed an upward reversal on the daily chart, closing the previous day at around 2,630 USD. Growth may continue following a slight correction. More details in our XAUUSD analysis for today, 20 November 2024.

XAUUSD forecast: key trading points

• Market focus: another escalation of the conflict in the Middle East drives up gold prices
• Current trend: reversal to the uptrend
• XAUUSD forecast for 20 November 2024: 2,643 and 2,600

Fundamental analysis

XAUUSD quotes appear to have completed a downward correction and shifted upwards to a long-term trend. Gold prices are supported by another round of escalation of the conflict in the Middle East, with Israel and Hamas exchanging fire at the beginning of the week.

A crucial batch of US statistics will be released on Friday – the Composite Purchasing Managers’ Index (PMI) and Michigan Consumer Sentiment Index. Weaker-than-forecast statistics could exert pressure on the US dollar and support XAUUSD. Conversely, stronger figures would push prices lower.

XAUUSD technical analysis

On the H4 chart, the XAUUSD pair has completed a downward correction, hovering around 2,630 USD. Asset prices plunged to 2,536 USD last week, where they encountered strong demand from buyers and formed a local trough. Following a slight correction, the uptrend is now expected to resume.

The short-term XAUUSD price forecast suggests that after rising steadily in recent days, the instrument might retrace towards the 2,577-2,600 USD support area and then resume its upward movement. If bears seize the initiative and secure below 2,577 USD, this will signal the end of the uptrend.

Summary

Gold (XAUUSD) quotes have completed a downward movement and reversed upwards, securing above 2,600 USD. The uptrend is expected to continue after a minor correction.