FX.co ★ Analysis of Gold for August 13,.2020 - Watch for the breakout of the Bollinger Bands contraction to confirm further direction

Comments by China's vice commerce minister

This reaffirms the message from the end of last week here, as both sides are reportedly preparing for talks later this week to assess the Phase One trade deal.

The message from China above also relates to recent measures taken by the US against WeChat and TikTok, in which there have been reports suggesting that they will be part of the upcoming negotiations.

This will be a key spot to watch as we look towards the weekend in trading tomorrow.

As I discussed in the previous review, the Gold did enter sideways mode after the selling climax from 2-days ago.

Further Development

Analyzing the current trading chart, I found that buyers and sellers are in equlibirum and that you should watch for breakout of Bollinger bands contraction.

1-Day relative strength performance Finviz:

Based on the graph above I found that on the top of the list we got Lumber and Live Cattle.

On the bottom of the list are Copper and Heating Oil.

Gold is still on the negative territory

Key Levels:

Resistance: $1,948

Support level: $1,911