On Monday, gold completed trading at a 2-months low. The decline was taking place against the backdrop of a stronger dollar, higher yields on treasury bonds and a recovery in the US stock market, which significantly weakened investor’s demand for yellow metal.
It is worth noting that at the end of September, gold showed a decrease of more than 4%, but according to the results of the 3rd quarter, an increase of more than 3% was recorded.
On Tuesday, gold maintains a downward vector, -0.35% from the beginning of the day. The pressure on the price is still exerted by the situation on stock exchanges, the main indices are traded in the green zone, and the US dollar, whose index is approaching the annual maximum, set in early September.
Today, the market expects a very rich news calendar. At the European trading session, investors will focus on PMI data on the manufacturing sector and preliminary figures on the consumer price index. At the American trading session, it is worth paying attention to the speeches of FOMC members Richard Clarida, James Bullard, Michelle Bowman and ECB President Mario Draghi. Also in the United States will be announced PMI manufacturing sector from ISM.
On the chart there was a breakdown of the lower border of the price channel 1485.00-1523.00. Within one trading day, the bears reached the previously noted target at the level of 1460.00. This is a fairly strong level of support, so we can expect from it the formation of a retreat. But trade priority remains on the sales side.
Resistance Levels: 1473.00, 1485.00, 1510.00;
Support Levels: 1460.00, 1450.00, 1435.00.
The main scenario is a correction to the area of 1473.00 and the resumption of the downward movement.
An alternative scenario is a breakdown of support at 1460.00 and a decrease to 1450.00 from current levels.
The market is dominated by a negative fundamental background. The chart is dominated by bearish signals. We consider shorts from the levels of 1473.00 and 1485.00.
To celebrate our 10-year anniversary we are going to provide a 10% compensation for every trading order closed at a loss to all Clients! PARTICIPATE IN THE PROMOTION TO GET THE MOST OUT OF TRADING WITH FORTFS: Compensation for every trading order closed at a loss Fully withdrawable without trading turnover requirements Compatible with deposit […]
Trade and receive real money for each 10th completed lot USE THE BONUS AND GET THE FOLLOWING BENEFITS: Unlimited withdrawal Compatible with Megaprotect and Deposit Bonus Available for cents and swap-free accounts HOW TO GET BONUS? To have a valid trading account To maintain the minimum account balance of 100 USD Keep trading and receive bonus funds for […]