Daily Brief, Nov 03 – Everything You Need to Know About Gold to Today! - Forex News by FX Leaders

Daily Brief, Nov 03 – Everything You Need to Know About Gold to Today!

Posted Tuesday, November 3, 2020 by
Arslan Butt • 2 min read
Good morning traders,
The gold prices closed at 1,895.54, after placing a high of 1,896.03, and a low of 1,873.41. The precious metal extended its daily gains, rising for the second consecutive day on Monday, with gold edging towards $ 1,900 an ounce, on the back of many factors, including rising uncertainties ahead of the outcome of the US election and the monthly policy meetings of the Federal Reserve and the Bank of England, which are due on Thursday. The increasing number of coronavirus cases also helped to boost the prices for the yellow metal.

It is expected that the Democrat or “Blue” party candidate, Joe Biden will wrest the US Presidency from the Republican or “Red” party in the November 3 elections, as the polls show that the odds are in favor of the blue wave. However, the tables could turn on Nov 03, and this uncertainty has raised the safe-haven appeal and supported the gains in gold.
Meanwhile, on the central bank front, the Bank of England and the Federal Reserve are expected to keep rates unchanged in their monthly policy announcements on Thursday.

Since Friday, an alarming worldwide surge in the numbers of new coronavirus cases has also boosted the gold prices. France and Germany have imposed new lockdown measures, and Britain has announced that they will impose similar restrictions later this week. The mayor of New York, Bill de Blasio, also said that the caseloads of new infections had reached worrisome levels. On Friday, the US reported almost 100,000 cases in a single day. These uncertainties regarding increasing infection rates from all over the world, along with the rising fears of economic recovery, supported the safe-haven metal prices on Monday.

On the data front, at 19:45 GMT, the Final Manufacturing PMI figures for October where released, coming in line with the expectations of 53.4. At 20:00 GMT, the ISM Manufacturing PMI figures for October showed a surge to 59.3 from the projected 55.6, supporting the US dollar. The Construction Spending for September dropped to 0.3% against the expected 1.0%, weighing on the greenback. The ISM Manufacturing Prices for October also rose to 65.6, against the projected 60.5. lending support to the US dollar. Most of the economic data released on Monday was in favour of the US dollar, which ultimately kept the gains in the gold prices limited.

Meanwhile, gold also drew support from the rising expectations that the winner of the US election will attempt to release a major mew COVID-19 stimulus package to help the economy. Both Biden and Trump have promised to deliver a fiscal relief plan ASAP, in order to help the United States deal with the second wave of the coronavirus pandemic.

The hopes that, no matter who wins the election, the US stimulus package will be delivered soon thereafter, supported the gold gains on Monday.

Daily Technical Levels
Support              Resistance
1,874.95              1,879.25
1,872.95              1,881.55
1,870.65              1,883.55
Pivot Point:        1,877.25
The precious metal, gold, has violated the consolidated narrow trading range of 1,885 – 1,873, as investors tried to capture quick moves ahead of the US election today. However, the Asian session has mostly remained muted, due to the US elections and NFP figures due later this week. The bullish breakout at the 1,898 level could open up further room for buying until 1,911, and on the lower side, gold might find support around the 1,886 and 1,865 levels. Good luck!
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