Gold analysis – 17 Oct 2019


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By: Ahura Chalki

CPI led the market!

Wednesday was the busiest calendar day of the week and we mentioned that at Monday’s weekly outlook, CPI data from most important economies of the world with the US retail sales report have been published. Except for New Zealand, CPI in other places was negative, Asia, EU, and Canada sounds like a bad luck day. Negative CPI along with Negative retail sales data from the US, while we do not have the exact signed agreement after the latest trade talks, yet, added the fears and risk in the market, which helped the Gold price to rise, while it was in clear downtrend after positive news from Brexit. On the other hand, the red stocks and futures also helped the Gold’s green color to become bolder. Today’s most important data for USD and Gold as well, are Manufacturing, Industrial and Housing data from the US.

Technical overview:

Technical indicators have totally mixed signals. RSI indicator in the H1 and H4 charts has totally side movement signal, while in both charts EMA crossing strategy supporting the bears and Stochastic which is in the oversold area in the H1 chart and overbought area in the H4 charts. However, since generally, we are in the downtrend, the stochastic signal also remains mostly bearish. For today trading with important levels, looks more logical. $1492, $1498 and $1511 are key resistance levels, while in a downtrend $1484, $1479 and $1477 are key resistance levels, which passing the $1479 could be followed by a sell-off to Oct. 1’s low near $1,460.

Pivot point: 1487.00

Resistance levels: 1469.98 / 1501.55

Support levels: 1482.43 / 1472.45

Today the expected trading range is between 1472.45 support and 1501.55 resistance.

Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.


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