Daily Brief, Oct 28: Everything You Need to Know About Gold Today
Gold prices closed at $1504.160 after placing a high of $1517.950 and a low of $1500.580. Overall, gold showed a slight bullish candle on the ending day of the week.
On Friday, Bank of Indonesia and Central Bank of Turkey also followed the global trend of rate cuts, which weighed on Gold prices. The US Federal Reserve will hold its meeting at the end of October, and with the rate cuts from other countries, the chances for the 3rd rate cut by the Fed this year are increasing day by day, which is weighing on the US Dollar.
Gold prices showed mixed movements on Friday when they rose above $1515, but after that, they dropped again. However, the precious metal managed to close its position in a slight bullish trend on the ending day of the week.
Parliament Brexit Vote – Tentative
The UK Parliament will vote on whether to hold a snap general election. The result will likely be projected before the official vote count is announced, based on early vote counts. A simple majority is needed to pass the bill.
GOLD was supported by US President Donald Trump’s tweet, who said that Federal Reserve should look around the world at its competitors. He said that Germany and other banks are getting paid to borrow money. He criticized that the Fed was very fast in raising interest rates, but it was very slow in cutting them.
The slump in the manufacturing activity of Japan, which fell at the fastest rate in three years, also supported the upward trend of gold prices last week. The same happened to the Eurozone, where manufacturing data also showed a decline for September. However, the US PMI defied the expectations of decline and supported the USD dollar that week.
The news from the Eurozone about the retirement of ECB’s president, Mario Draghi, also affected the gold prices. The negative interest rate policy of Draghi, which was also criticized by his members of the bank, has done much to push gold higher this year. Mario Draghi took retirement after eight years of service and handed over his position to former IMF Managing Director, Christine Lagarde. She has decided to review the ECB policy strategically before deciding her next course of action.
XAU/USD – Technical Levels
Support Resistance
1497.42 1514.84
1490.32 1525.16
1472.9 1542.58
Key Trading Level: 1507.74
Gold – XAU/USD – Forex Trading Signal
On the 4-hour chart, 1,514 trading level is keeping gold bearish as it’s a triple top level. Although gold price surged dramatically to place a high around 1,517, the gains were limited, and gold slipped to close around 1,505 level.
On the daily chart, gold’s ascending triangle pattern of gold is still intact, and it may keep gold bearish below 1,514 and bullish above 1,496 until the breakout occurs.
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