Gold analysis – 7 Nov 2019


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By: Ahura Chalki

Chinese pressure and the US Step Back?

The market moves in uncertain directions, which is not based on economic data. For now, US-China trade talks have not exact results, news changes about that, from signing the Phase-One in December (Reuters) to China’s request for “another round of talks before signing phase one of the trade deal” (CNBC). On the other side, USD strength also would not let Gold to raise as fast as before, after its latest rebound from downside correction on $97.57. Risky environment and lack of economic data following the light calendar also help DXY to raise for now and as a result, the safe-haven seesaws near $1,490 amid initial Thursday morning in Asia.

“It’s worth mentioning that demand from India, among the world’s top bullion consumers, declines 32% in the third quarter (Q3) of 2019 as per the World Gold Council’s (WGC) recent trend report. The WGC also downgraded its Indian gold demand prediction for the whole 2019 year to around 700 tons, compared with 760 tons the previous year.” (FxStreet).

Technical Analysis:

While EMA crossing strategy in both H1 and H4 charts support the bears, Parabolic SAR dots in the H1 chart, getting so close to Candles from downside to warn about the potential of direction changes, but in the H4 chart, it still supports the bears. 20-Day EMA at 1494 is the immediate resistance while passing the $1498 (61.8% of Fibo) will open the doors once again to more number, by crossing 50-Day EMA at 1501. On the downside, $1476 and $1469 are in the spotlight.

Pivot point: 1489.25

Resistance levels: 1496.18 / 1501.03

Support levels: 1484.40 / 1477.49

Today the expected trading range is between 1477.49 support and 1501.03 resistance.

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