Categories: Financial NewsMetals

XAUUSD Analysis: Expectations of higher money supply bullish XAUUSD

August 19, 2020

By IFCMarkets.com

Expectations of higher money supply bullish XAUUSD

Current technical setup is bullish for gold. Monetary stimulus programs of central banks all over the globe struggling to support their economies as coronavirus lockdowns caused sever downturns in economic activities boost demand for gold. Increasing global money supply is bullish for XAUUSD. However the recent rally in XAUSD paused as US lawmakers couldn’t agree on new round of federal stimulus funding. And US House of Representatives Speaker Nancy Pelosi said yesterday that Democrats in Congress were willing to cut their coronavirus relief bill in half to get an agreement on new legislation Republicans. Lower than expected new US monetary stimulus package is a downside risk for XAUUSD.

Indicator VALUE Signal
RSI Neutral
MACD Sell
Donchian Channel Buy
MA(200) Buy
Fractals Buy
Parabolic SAR Buy

 

Summary of technical analysis

Order Buy
Buy stop Above 2014.51
Stop loss Below 1974.96

Market Analysis provided by IFCMarkets.com

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