Green close for gold in yesterday's session at $1490, as investors digested a basket of US figures, while stocks were mixed as U.S. China trade war optimism fades with talks about the Trump-Xi summit slipping to December as two U.S locations for the meeting get ruled out. U.S Nonfarm Productivity for Q3 (QoQ) came in lower than expected at -0.3% vs. 0.9% and a previous of 2.5%, while Unit Labor Costs (which measure the annualized change in the price businesses pay for labor, excluding the farming industry) beat estimates and previous figures at 3.6% vs. 2.2% vs. 2.4% respectively. Investors await the release of US Initial Jobless Claims today among other figures.
Gold confirmed our support at $1482.93, before bouncing higher and registering an intraday high of $1494 as the market trades in an intermediary bullish parallel channel. Bullish momentum in play as long as our parallel channel holds, with our first target at R1: $1486.89, while a breach of this channel and a break below $1487 will put the bears back behind the wheel testing S1 at $1482.93
Support: 1482.93/ 1474.34/ 1461.09
Resistance: 1496.89/ 1507.27