Wednesday, October 31, 2018

GOLD - 31 October 2018


Fundamental Highlights

Gold remained under some selling pressure for the third consecutive session and is currently placed at near three-week lows, just above the $1216 level. The prevailing bullish sentiment surrounding the greenback, with the key US Dollar Index hitting 16-months highs earlier in the session was seen as one of the key factors weighing on the Dollar-denominated commodity. Optimistic comments by the US President Donald Trump, predicting a "great deal" with China, eased fears of any further escalation of a trade war and initiating the selling pressure for the yellow metal.

Technical Analysis

As expected, Gold prices broke to the downside nearly touching $1216 as they are currently hovering just above it. The RSI is pointing towards oversold conditions but the price has still a little bit more room to go down before we can see a moderate recovery. The next level we will be watching is the $1220.10 resistance level.

Support: 1230.74 / 1228.26
Resistance: 1237.79 / 1244.78

Chart (H4)