Gold Traders Eye Breakout – Who’s Ready for the Trade? 

Gold prices opened at $1487.96 and have placed a high of $1496.260 and low of $1487.560 until now. Gold is currently trading at $1492.650 as of writing and has shown a bullish trend for the day. The Brexit uncertainty is keeping a higher demand for Gold and driving a rise in gold prices. The British Parliament is making it hard for PM Boris Johnson to fulfill his promise of delivering Brexit on October 31.

After the rejection of Johnson’s timetable for Brexit legislation by the UK Parliament on Tuesday, the expectations of another Brexit delay are in the headlines. Analysts, however, are optimistic that a no-deal Brexit might be avoided.

On Friday, the Indian Diwali festival will begin, and Indian consumers are known to buy Gold during this festival. But this year, there are chances for almost 50% drop in gold demand from Indian consumers during Diwali because of higher prices of Gold and increased import duty on Gold.

On the economic data front, the US Dollar was under pressure due to a drop in HPI. At 18:00 GMT, the US House Price Index for the month of September dropped to 0.2% from the previous month’s 0.4%. The fall in the US Dollar caused a rise in Gold prices on Wednesday.

Support Resistance
1488.42 1496.6
1484.23 1500.58
1476.06 1508.76
Key Trading Level: 1492.41

GOLD – XAU/USD – Forex Trading Signal
The technical side of the precious metal gold hasn’t changed much since October 11. Gold continues to trade in an asymmetric triangle pattern, which is extending resistance at 1,496 area along with support at 1,487.

The 20 periods EMA is also extending support at 1,487 area. Below this level, the 1,482 (double bottom) level is likely to extend support. Since ascending triangle patterns typically break on the upper side, the violation of 1,496 can lead gold prices towards 1,507 area.

Good luck!