The safe-haven metal gold prices consolidate in the narrow range of $1,508.60 and $1,497 at the start of this week. The lack of volatility in the market was mostly due to the national holidays in China.
However, the precious metal gold prices slipped later during the European session as the dollar rallied after a report stated China was unwilling to consent to a broad trade deal with Washington. The bullion traded in a tight range as investors adopted a wait-and-see strategy before U.S.-China discussions this week.
As we know, it was all about the United States employment data, which is disappointing, and jobless rate prints a low of 3.5% during September, from 3.7% in August. The United States and Chinese trades are ready to start again this week. However, the Sentiment regarding trade war negotiations is not right.
Looking ahead into the fundamentals, some other key events are under the spotlight, including Federal Reserve chairman Powell’s speech, the FOMC minutes, and the United States Consumer Prices Index.
On the technical side, the gold prices started a day with a Doji candlestick on the charts and having the prices ending above the $1500 psychological level again.
The technical side of the market seems pretty clear as investor’s are consistently testing 1,497 support area. The violation of this level could extend the bearish trend until 1,492 and 1,487.
At the same level, we got the 50 periods EMA, which is also extending support at 1,497 zones.
The leading indicator, such as MACD and RSI, are holding staying in the neutral zone, suggesting indecision among traders today.
Daily Support and Resistance
Pivot Point 1505.52
I would rather stay out of the market until we have clear direction about the market and clear path means either the bearish breakout of 1,497 or bullish candles closing above the same level.