Gold ended the week at $1516 on mixed economic figures released on Friday coupled with renewed optimism on reaching a strong US- China phase one deal, and a stock market that's recording new all-time highs boosting global investors' appetite for riskier assets. This risk on sentiment have managed to mute gold prices, at least for the time being, as investors further await for news on the quality of the trade deal which will set market direction. U.S. Non-farm payroll figures released showed that the US economy added 128K jobs in October vs. an expected of 85K, while the ISM’s manufacturing PMI came in at 48.3, representing a bigger-than-expected contraction in the sector.
Gold tested and confirmed our resistance and support levels on Friday, which remain in play for today’s session, expecting a retest to our $1507 line in the sand level, as RSI heads towards 50. A close below the $1507 will pull prices lower to our first support level at $1503. A breach of the $1514 resistance level will build up bullish momentum with $1523 as the next intermediary target.
Support: 1503.11 / 1496.89
Resistance: 1514.13 / 1523.38