Gold is Down for the 2nd Day in a Row

The Daily View for Gold

  • Currently, XAUUSD’s price is down $-11.93 (-0.66%) from the day prior.
  • This is the 2nd day in a row Gold has seen its price head down.
  • If you’re a trend trader, consider that the strongest clear trend on the daily chart exists on the 100 day timeframe.
  • Of note is that the 20 day changed directions on XAUUSD; it is now pointing down. The moving averages on the daily timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

Below is a daily price chart of Gold.


Featured Gold Idea From TradingView

Below is a trading comment entitled Impact of gold on the foreign exchange market you may find interesting:

Gold and other precious metals such as silver, platinum and palladium have intrinsic value as solid physical assets with important industrial applications. They also have value due to their ability to store significant amounts of wealth in a fairly small space.As a result, many people hold gold to guard against inflationary pressures and to provide a medium of exchange during turbulent times that can devalue the value of fiat currencies. Moreover, many currencies at one time or another have been pegged to gold or the so-called “gold standard”.For example, from the mid-1940s to the early 1970s, gold determined the value of most of the major currencies in the world’s foreign exchange markets in accordance with the Bretton Woods exchange rate system. This post-war system of fixed exchange rates collapsed in the early 1970s when then President Richard Nixon ordered the US dollar to be removed from the gold standard.US dollar and goldMore recently, as the US government continues to significantly exceed its revenues under the pretext of stimulating the country’s economy based on loan-freeing, investors increasingly look to gold as a hedge against the almost inevitable inflationary consequences of increased government borrowing to print more paper money. This has led to a recent inverse relationship between the value of the US dollar and gold.Moreover, as Germany realized after World War I during a devastating hyperinflationary period in the early 1920s, this kind of ir…