This post is also available in: فارسی (Persian)
By: Ahura Chalki
Gold surrendered to the USD potency!
After the strong US data, DX jumped to two weeks high at 98.66 from its daily low, 97.93. New home sales rose 7.1% to 713k in August. While democrats trying for president impeachment in the US, Mr. Trump’s comment about the trade talk that “U.S.-China trade deal could happen sooner than expected” (Reuters), sent the stocks to the green zone and a Gold deeper as $34 from its yesterday’s high. Today. The US GDP will be in focus, which will help much about an understanding of the USD direction, will it get back above $99 or return under $98. Strong GDP is likely expecting as most of the important GDP creator indicators, were much better than expected as CPI, PPI, Retail sale, Consumer Confidence, Trade Balance and so on. For now, as positive environment is about trade talks and the US economic data, Gold will suffer from that.
Even if it was really free fall for Gold, still it is trading above the psychological support level of $1500. Breaking down this level can take it to the next levels at $1485 and then $1456. However, returning back above $1517 also will be the green light for $1524, $1535 and $1555 as next resistance key levels. In the H1 chart, technical indicators supporting of more bears. RSI moves at 36-level, while Candles are between middle and lower band of BB. EMA crossing strategy also confirming the more dive.
Pivot point: 1510.40
Resistance levels: 1520.40 / 1545.00
Support levels: 1488.80 / 1475.80
Today the expected trading range is between 1488.80 support and 1520.40 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.