Gold analysis – 10 Sep 2019

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By: Ahura Chalki

Gold trading below the psychological level of $1500!

With raising hopes and developments in the US-China trade talks, stocks are higher this month as both American and Chinese officials confirmed the meeting in October and since that we did not have any negative news or updates about that. All stocks from the beginning of September are green and much higher than closed numbers of August.  The US 2-year treasury yields rose from 1.53% to 1.59%, while the 10-year yield rose from 1.56% to 1.64% (FX Street). That makes Gold to lose some safe-haven appeal and break its psychological level at $1500. Breaking $1493 and trading close to next support at $1480still confirms of more bearish. However, today’s US JOLTs data will be in focus which positive job data will send the Gold deeper and vice versa with negative data since still there is fear in the market from the economic recession.

Technical analysis

As a technical and fundamental analysis, both confirm of more bearish, the next key levels in the bearish move are $1478 (August 13 low) and $1456 (August 6 Low). However, in correction or return, beaching above $1504 can confirm reversal in trend to reach the $1517 and $1524. Technical indicators in the H1 chart still confirm more bearish and the possibility of correction as well, as EMA20,50 and 200 all are above the current price and above the candles as well. MACD histograms and both signal and mainline also all forming under 0-level. RSI moves at 30-level with the oversold signal, while Momentum with the sharp slope up returning close to 100 level at 99.

 

Pivot point: 1502.53

Resistance levels: 1507.71 / 1520.65

Support levels: 1489.59 / 1484.41

The expected trading range for today is between 1484.41 support and 1507.71 resistance.


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