Gold - Everything You Need to Know Today - Forex News by Strategia Forex

Gold – Everything You Need to Know Today

Posted Monday, October 7, 2019 by
Arslan Butt • 2 min read

Gold closed at $1504.5 after placing a high of $1515.36 and a low of $1495.81. At 17:30 GMT on Friday, the closely watched Nonfarm Payrolls and Unemployment Rate from the Labour Department were released. There were 136,000 jobs created in the month of September, and the unemployment rate fell to 3.5%.

The news that the US Unemployment Rate fell to a 50-Year low in the month of September this year made the prices of gold fall on the last day of the week.

Before Friday, there were continuous weak economic releases from the United States for about three days in the previous week, due to which gold prices were moving in bullish trend, but that rise in Gold Prices was stopped somehow when the unemployment rate dropped to its lowest level in nearly 50 years.

The continuous weak economic releases gave the impression that the US may fall under recession, which drove the Gold Prices in an upward direction. However, on Friday afternoon, Fed Chair Powell, admitted that the US economy was facing some risks and challenges, but he also said that overall, the economy was in the right place. Powell also noted that Federal Reserve was examining strategies to attain a 2% Inflation Rate.

Fed vice chairman Richard Clarida also said that despite weak data that emerged in a week, there were meager chances of a US economic recession.

These positive statements, along with Low Unemployment Rate this month, made Gold prices move downward. However, the overall movement of Gold prices remained bullish for last week.

 

Gold – 4 Hour Chart

This week, the US-China Trade talks will reopen, and there are chances for a deal settlement to end this prevailing US-China Trade war. Gold traders will be looking forward to these talks for further investment ideas. Fed Chair Powell will speak on Monday, which will also decide the movement of US Dollar and gold prices.

Support Resistance 

1495.05 1515.19

1485.38 1525.66

1465.24 1545.8

Key Trading Level: 1505.52

GOLD – XAU/USD – Forex Trading Signal

Gold continues to face a hard time below 1,510, as this level seems to push the precious metal lower. The 4-hour candles have tried to cross above 1,510 to place a high around 1,518 on worse than expected NFP figures, but the gains remained limited, and gold slipped lower to close below 1,510 area. For now, gold is likely to face immediate support around 1,503 area, and below this, gold can dip further towards 1,494.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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