- Summary:
- Gold prices trading on positive foot for the third day in a row after conflicting headlines from Brexit and US-China trade talks developments.
Gold prices trading on positive foot for the third day in a row after conflicting headlines from Brexit and US-China trade talks developments. On the US-China trade tensions front, the situation is getting darker ahead of the negotiations, as China said it would retaliate after US Government put Chinese technology companies on blacklist. The negotiations starting later today, ahead of a scheduled increase in U.S. tariffs on $250 billion worth of Chinese imports, to 30% from 25% on 15th October 2019. Under these circumstances investor’s appetite turned to safe-haven assets such as gold and Yen. Yesterday a report from World Gold Council, showed that the global gold-backed ETFs hit an all-time high, adding 75.2 metric tons of gold in September to a total of 2,808 metric tons.
The U.S. CPI figures are due later today which can be a key catalyst for gold prices. The Fed meeting minutes from September said that the FED is in favour of more rate cut to avoid economic slowdown. Gold Support and Resistance
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[vc_single_image image=”14654″ img_size=”medium” alignment=”center” style=”vc_box_rounded” onclick=”custom_link” img_link_target=”_blank” link=”https://news.investingcube.com/q4-global-market-outlook-eurusd-gold-crude-oil-bitcoin-sp-500/”]Gold trading slightly higher in European trading session keeping the positive momentum which started from two-week lows at $1,458. Gold price holds above the 20 and 50-day moving average. On the upside, resistance would be met at $1,516.95 today’s high while a break above will open the way for a move up to 1,519.49 high from October 3rd. On the flipside, immediate support for Gold stands at $1,503.74 daily low and then $1,500 psychological support. The precious metal has established a strong support zone at $1,458 recent low. Bulls are in control of gold prices as long as the price holds above $1,500. A break below will question the rebound from two-week lows and might attract some offers that can re-establish the negative trend with a move down to 1458.