Analysis of Gold for October 28,.2020 - Breakout of the balanced reagime and potential for test of $1.870

Prior 26.2

Economic expectations have slumped heavily, even the readings for the Eurozone (drop from 11.5 to -7.0) and the US (drop from 8.2 to -9.3), and that reflects waning optimism among investors towards the outlook in Q4.

As the virus resurgence continues and tighter restrictions are being weighed across Europe, that is not going to have a positive impact on the economy ahead of the year-end.

Further Development

Analyzing the current trading chart of Gold, I found that there is the breakdown of the few day balance in the background, which is great sign for further downside.

Watch for selling opportunities on the rallies with the downside targets at $1,870 and $1,848.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got VIX and Feeder Cattle today and on the bottom Gasoline RBOB and Crude Oil.

Key Levels:

Resistance: $1,912

Support levels: $1,870 and $1,848.