On Monday, the precious metal gold prices consolidate below the crucial trading level of 1,514 today. The growing risk appetite amongst traders, encouraged by confidence in U.S.-China trade discussions and diminishing fears of a global economic slowdown. Overall, the precious metal gold dropped 0.1% to $1,511.44 during the Asian session, while gold edged 0.2% higher at $1,513.70.
The U.S. Non-Farm Payroll of US rose above expectations, and the Manufacturing PMI was also increased but came in below expectations. Both these reports were highly awaited by the traders as they were leading indicators of the economy. The increased payrolls in October and modest improvement in the Business activities were notable developments and pointed the calm journey of the US economy in prevailing uncertainties.
Some optimism from US-China Trade talks also appeared in the market after the reports suggested that China & US trade representatives were under a constructive talks session on Friday. The conversation held between Treasury Secretary Mnuchin and Chinese Vice President Liu regarding the next steps in the trade truce phase one deal.
XAU/USD – Daily Technical Levels
Pivot Point 1511.5
At the moment, gold is facing substantial resistance at 1,514 level, and this level may decide the fate of precious metal today. Below 1,514 level, we may see gold prices falling towards 1,507, and the violation of 1,507 level can extend sell-off until 1,503.
All the best!