Home Forex Market Analysis Forex Signals Gold Supported Over Symmetric Triangle Pattern – Quick Outlook! 

Gold Supported Over Symmetric Triangle Pattern – Quick Outlook! 


The yellow metal prices extended its Friday’s winning streak and took bids around the $1,936 level, mostly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning Brexit and on-going tension between the U.S. and China. This, in turn, helped the gold prices to put safe-haven bids. In the meantime, the coronavirus (COVID-19) worries also keeps the market trading sentiment cautious.

On the contrary, the broad-based U.S. dollar strength, backed by the jobs data, which showed a dip in the unemployment rate, and a surge in U.S. Treasury yields, becomes the key factor that capping further upside momentum for the bullion. The yellow metal prices are trading at 1,928.19 and consolidating in the range between 1,927.92 – 1,941.47. However, the bullion traders seem inactive to place any strong position amid Labor Day Holiday in America.

Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus issues, the market trading sentiment has been flashing red since the week started, which ultimately keeps the safe-haven assets supportive on the day. At the Brexit front, the UK PM Boris Johnson set the October 15 deadline to trade with the European Union (E.U.). The tension was further bolstered by the Financial Times’ headlines, suggesting that the U.K. is preparing fresh legislation that will override key parts of the Brexit withdrawal agreement. These gloomy headlines initially exerted downside pressure on the market and helped the safe-haven assets. 

At the US-China front, the Sino-China tensions further bolstered after the Trump administration’s blacklisting of Beijing backed SMIC. Hopefully, this happened after China warned to cut the U.S. debt buying and threatened U.S. chipmakers while announcing a 5-year plan to build the infrastructure to be self-dependant.

However, the reasons for the downbeat trading sentiment could also be attributed to the coronavirus (COVID-19) woes, which keep disturbing the global markets. The latest figures from Australia and Texas have been normalizing, but India and Brazil are still facing major pandemic issues. In Japan, 72,203 people have tested positive as of 7:30 PM, September 5, 2020.

At the USD front, the broad-based U.S. dollar extended its early-day gains and took further bids on the day due to Friday’s job data, which showed a decline in the unemployment rate and a rise in U.S. Treasury yields. On the flip side, the data showed that U.S. employment growth slowed, and permanent job losses increased. This, in turn, capping further again in the U.S. dollar. s. Although the gains in the U.S. dollar become the key factor that kept the check on any additional gains in the bullion as the price of gold is inversely related to the U.S. dollar price. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.18% to 92.882 by 12:05 AM ET (5:05 AM GMT).

Looking forward, the Labor Day Holiday in the U.S. will likely restrict the market moves. As well as, the updates on the virus and Sino-American tension could not lose its importance. In the meantime, the market players will be interested in the headlines concerning the Brexit.

At this movement, precious metal gold is trading sideways near 1,928, having immediate support at 1,930 and resistance at 1,940 levels. We can expect choppy trading today amid U.S. bank holidays in the wake of labor day. Neutral bias prevails in the market today. Let’s wait for gold to test the support level of 1,919. Violation of 1,919 may drive more selling until 1,903 and 1,880. Good luck!


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