Gold Breaks Horizontal Support – Trade War Fear Looms
Arslan Butt • 1 min read
During the Asian session, the safe-haven-metal prices dropped and hit 3-month lows to trade around 1,448 level, despite continuous uncertainties regarding the US-China trade deal and geopolitical tensions elsewhere. Today’s decline in the gold prices were limited due to the lack of clear impetus, whereas trading sentiment was under check because of the closure of the bond market and many banks for the Veterans Day holiday in the United States.
Looking ahead, traders will closely observe the scheduled Federal Reserve official’s speech during this week. The Fed Chairman Jerome Powell hinted earlier that the US central bank’s third straight rate cut of a quarter-point in October would be its last for the year.
At the data front, the United States will release its October consumer price index on Wednesday. Retail sales and industrial production data for the month are scheduled on Friday.
Hong Kong political protest concerns are under the spotlight mainly after violence intensified following the death of a Hong Kong University of Science and Technology student after he sustained a serious brain injury near a clearance operation of a protest.
GOLD – XAU/USD – Trade Idea
The latest updates on the US-China trade war are keeping gold prices on a move. Risk appetite soared driving the bearish trend in gold. Bearish sentiment in gold still seems strong below 1,458.
Daily Support and Resistance
Pivot Point 1462.77
The bullish breakout of 1,458 can lead to gold prices towards 1,464. On the lower side, the bearish breakout of 1,454 can lead to gold prices towards 1,448 support levels.