FX.co ★ Analysis of Gold for October 23,.2020 - Rejection of the support trendline and potential for the rally towards $1.930

Latest data released by Markit - 23 October 2020

Prior 53.7

• Services PMI 46.2 v 47.0 expected
• Prior 48.0
• Composite PMI 49.4 vs 49.2 expected
• Prior 50.4

The readings here fit with the narrative with what we have seen from the German and French readings - more so the former - earlier in the past 45 minutes.

It reaffirms a two-paced 'recovery', where the manufacturing sector is keeping more resilient overall while the services sector momentum continues to fade into Q4.

Further Development

Analyzing the current trading chart of Gold, I found that there is potential completion of the downside corretion, which is sign for further rise.

I would watch for buying opportunities with the targets at $1,931 and $1,955.

Stochastic just came out from oversold zone and there is the fresh bull cross, which is another sign for the furher rise....

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Crude Oil and Lumber today and on the bottom Natural Gas and Lean Hogs.

Key Levels:

Resistances: $1,931 and $1,955.

Support levels: $1,894