Gold Price Analysis: XAU/USD now up nearly 1%, ETFs amass record inventory

• Dollar sell-off propels gold to session highs above $1,910.
• Gold is now chipping away at a two-month descending trendline. 
• ETFs amassed record inventory in the first nine months of 2020.

The upward move in gold is gathering steam with markets offering US dollar alongside continued risk-on action in the global equities. 

The yellow metal is now trading at a session high of $1,912 per ounce, representing a 0.95% gain on the day. 

That level is currently housing the resistance of the trendline falling from the record high of $2,075 reached on Aug. 7.

Acceptance higher would signal a revival of the broader uptrend from lows near $1,450 observed in March and open the doors to a re-test of the record high of $2,075. 

The daily chart MACD histogram has already crossed into bullish territory above zero for the first time since Aug. 10. 

Besides, investor demand has been strong as evidenced by a surge in stockpiles held by the Gold-backed exchange-traded funds (ETFs). 

The ETFS have added more than 1,000 tonnes of bullion in the first nine months of 2020. 

According to Reuters News, the hoarding seen in the first nine months of the year far exceeds any previous full year. 

That said, a breakout in gold may remain elusive if equities drop in the run-up to the Nov. 3 US Presidential Elections, as warned by Goldman Sachs, boosting the haven demand for the US dollar. 

Daily chart

Technical levels