Gold analysis – 5 Nov 2019


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By: Ahura Chalki

Decline with doubt!

Monday, Gold declined from its daily high after USD pullback, however doubts in the market about Trade Talk and negative factory orders in the US, stop the previous downtrend. This fears continued earlier in the Asian season with negative China’s Caixin Services PMI and RBA decision to hold the rate cut in record low at 0.75%. The latest challenge in trade talks is tariffs, China’s push for further tariff cuts, as conveyed by Politico, and comments from the San Fransico Fed President Mary Daly lead the list. Traders and investors are still worried about world’s largest economies and the possibility of a recession on both sides. On the other hand, the stock market’s rally is going on, while Dow 30 and S&P500 printing new record highs. Today and after negative China’s Caixin Services PMI, JOLTs Job Openings and ISM Non-Manufacturing PMI from the US will be the most important calendared news.

Technical Analysis:

$1505 still is the key level and now it is immediate support, while Gold is trading now above $1506. Price moves above EMA50, while EMA crossing strategy supports the bulls. RSI moves at 50-level with side movement signal at the H4 chart. Stochastic still has a negative signal, supporting the bears. Still, $1498 and $1518 are key Support and Resistance levels to recognize the next trends.

Pivot point: 1509.50

Resistance levels: 1514.63 / 1519.91

Support levels: 1504.22 / 1499.10

Today the expected trading range is between 1499 support and 1519.91 resistance.

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