XAU/USD – Things You Need to Know About Gold Today
Arslan Butt • 2 min read
Gold prices closed at $1489.93 after placing a high of $1494.130 and a low of $1484.840. The overall trend for gold remained bearish that day. At 19:00 GMT, the Conference Board (CB) Leading Index from the United States for the month of September came in as unfavorable at -0.1% against positive expectations of 0.1% and weighed on the US dollar.
Gold prices were nearly unchanged at the ending day of the week and remained range-bound because of the Brexit vote ahead on the weekend. Gold prices showed a downward movement despite the increase in Euro and Pound that day, which weighed on the US dollar.
According to that trend, Gold prices should have surged, but they showed a slightly bearish trend because of uncertainty and the risk factor that emerged in the market related to Saturday’s Brexit vote.
Weaker than expected Chinese data on Friday showed that China has also suffered because of the US-China trade war and gave another reason for a quick trade deal settlement between US and China. Chinese GDP for the Q3 2019 decreased to 6.0% from the second quarter’s GDP of 6.2%.
This raised the possibility of a sooner than expected comprehensive deal agreement between US-China and, ultimately, an end to the prevailing trade war due to escalating economic damage fears. The positive hopes for an end to the slowdown of global economic growth also caused the downward movement of gold prices at the ending day of the week.
Gold also turned bearish on Friday over comments from central banks of different countries. Various central banks hinted at no further requirement of monetary policy easing and the threat of rate cuts faded, causing a dip in gold prices.
Daily Technical Levels
Pivot Point 1489.51
GOLD – XAU/USD – Forex Trading Signal
On Monday, the precious metal gold continues to trade below 1,497 resistance. This level has now become a triple top level on the 4-hour chart. The bullish trendline is supporting the metal around 1,488 today.
Overall, it’s an ascending triangle pattern, which typically breaks out on the upper side. The breakout of this range may help us determine the next target for gold. A bullish breakout of 1,497 level may lead to gold prices towards 1,503 whereas, the bearish breakout of 1,487 can extend sell-off until 1,482 and 1,478.