Friday, November 2, 2018

GOLD - 02 November 2018


Fundamental Highlights

With the greenback staying under a heavy bearish pressure on Thursday, the XAU/USD pair erased all of the losses it suffered since the start of the week and broke above the $1230 mark. The huge boost came after macroeconomic data releases from the United States failed to pull investors back to the USD. The final PMI for October came in at 55.7 to miss the analysts' estimate of 55.9. Chris Williamson, Chief Business Economist at IHS Markit said “The key area of concern remained tariffs, which were widely reported to have contributed to another month of stalled export sales and a steep rise in prices for many inputs”. However, the upbeat market sentiment during the session, made it difficult for the precious metal to continue to find demand. Rising optimism around a possible trade deal between the US and China provided a boost to the American stock indices.

Technical Analysis

After touching a 5-day high at $1237, the price started consolidating near the top around the $1234 level where it was up an impressive $20, or 1.6%, on the day. Momentum was very strong and continue to be bullish with more room to go before entering into overbought state. Today we will be watching the $1244.8 level if the demand on the yellow metal picks up again.

Support: 1230.74 / 1228.26
Resistance: 1237.79 / 1244.78

Chart (H4)