Gold: Bears in Control Below 1,500
Gold price rebounds from daily lows around 1,486 up to 1,494 area keeping the positive longterm outlook. Gold pressures continue as US – China trade war tensions ease and the no deal Brexit scenario gets out of the way. Markets now having priced out a 50bps rate cut at the Federal Reserve September 18th meeting.
The long term trend is bullish for the precious metal despite gold registered losses the last four trading sessions and pierced below the 20-day moving average. Now the short term momentum has shifted to the downside. Gold price trades below all the major hourly moving averages; Immediate support for Gold stands at 1,486 daily low and then at $1,469 the 50-day moving average, a level that the last time the price was below is back in May 2019. On the upside, resistance would be met at 1,499 today’s high and then at 1,504 the 50-hour moving average; more offers will emerge at 1,519 the 100-hour moving average.
Bears are controlling the game as long as the price holds below 1,500. A break above will question the recent negative momentum and might attract some bids that can re-establish the positive trend.