On Wednesday, the precious metal gold expanded after softer-than-expected U.S. economic figures which hiked concerns about global economic growth. Alongside this, it also raised chances of additional interest rate reductions, pushing traders towards the safe-haven metal.
The precious metal gold is still trading bullish adding 0.3% to trade at $1,483.6. Yesterday, gold slipped dramatically to place two months low at $1,458.50. However, the losses in gold were short-lived as it surged markedly as much as 1% during the late U.S. session.
The U.S. manufacturing activity dropped to a more than a decade low in September as imminent trade tautness pressures on exports. The vulnerable economic report raised global growth anxieties, leading global stock markets to a one-month low and boosting forecasts for further monetary policy easing by the U.S. Federal Reserve.
Gold – Technical Outlook
On the technical front, gold has formed a bullish engulfing candle at 1,480 area, which is suggesting strong bullish bias among traders. On the upper side, gold is likely to meet the 61.8% Fibonacci retracement level of 1,492, but that’s only possible if it manages to crossover the 50% Fibo level of 1,487.
Gold – Daily Technical Levels
Pivot Point 1,475.21
Gold traders can consider trading bullish above 1,475 level today as the immediate target is likely to be 1,488 and 1,495. Selling can be seen below 1,498 level today.
All the best!