FX.co ★ Analysis of Gold for August 14,.2020 - Watch for potential breakout of the sideways base to confirm further direction

• Capacity Utilization improved more than expected in the same period.

Industrial Production in the United States expanded by 3% on a monthly basis in July, the Federal Reserve reported on Friday. This reading followed June's increase of 5.7% (revised from 5.4%) and came in line with the market expectation.

As I discussed in the previous review, the Gold is in the sideways mode and I still wait for the directional breakout.

Further Development

Analyzing the current trading chart, I found that the best option is to wait fo the breakout of either support or resistance.

The breakout of the resistance at $1,962 might confirm further test of $2,012

The breakdown of support at $1,938 might confirm further downside movement towards $1,920 and $1,907.

Watch for the buying opportunities on the dips.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Natural gas and Lumber, on the bottom Silver and Euro Stoxx 50

Gold is still in negative territory.

Key Levels:

Support: $1,938