Good morning, traders.

On the news side, we don’t any high impact events today as traders will be absorbing ADP and ISM non manufacturing figures ahead of NFP tomorrow. The Eurozone is looking to release GDP and retail sales data and this may help Euro pairs with price action today. Overall, these events are expected to show mixed results, and being low impact events, we may not see major fluctuations in the market.

Gold prices closed at $1474.38 after placing a high of $1484.030 and a low of $1471.390. Overall the movement of Gold remained bearish.

At 18:15 GMT, the long-awaited ADP non-farm employment change from the United States was released and came in at 67k against the expectations of 140k and weighed on USD.

At 19:45 GMT, the final Services PMI from the US came in as expected 51.6. At 20:00 GMT, the ISM Non-Manufacturing PMI of the United States also dropped to 53.9 from the expectations of 54.5 and weighed on the USD.

Traders on Wednesday ignored the weaker than expected creation of private sector jobs in the United States and focused more on a potential trade deal between China & the US. Gold prices moved in a bearish trend despite weak macroeconomic data from the United States.

Bloomberg reported on Wednesday that China and the United States were moving closer to agreeing on the number of tariffs that would be rolled back in phase-one trade deal despite the tensions over Hong Kong.

GOLD prices suffered due to this report, while US Treasury yields and demand for riskier assets increased. However, losses in gold prices remained range-bound on the back of weaker US dollar due to poor macroeconomic data.

Reports suggested that US President Trump’s comment on Tuesday related to the delay in trade deal settlement between US & China should not be considered as a means to stall the ongoing trade talks.

On the other hand, it can also be said that US legislation to punish Chinese officials over human rights issues in Hong Kong also had no effect on the trade talks. It means that chances of completion of the phase-one deal between US & China before mid-December increased in the market and reduced the demand for safe-haven assets.

The yellow metal, being a safe-haven asset, came under pressure on Wednesday when traders gave more importance to the raised trade optimism and almost ignored the weaker than expected US macroeconomic data.

Support Resistance 

1464.34 1486.32

1451.14 1495.1

1429.16 1517.08

Key Trading Level: 1473.12

Gold – XAU/USD – Daily Outlook

Gold continues to trade bullish, having tested our previously suggested 1,484 level over safe haven appeal. On the 4-hour chart, gold is facing support around 1,471 level and this level can trigger buying in gold to lead its prices towards 1,484 resistance level. Bullish bias still remains strong today. But in any case, the violation of 1,471 can lead gold prices towards 1,466. All the best!