It was quite a busy day with series of economic events from global economies. The greenback advanced as trade-related tensions eased after the U.S. administration relaxed its approach to Chinese investment. Most of its buying came on the Euro and the Swiss Franc. Whereas, gold prices hovered on top of 6 months lows as traders continuing to shun the yellow-metal despite signs of a reversal in risk sentiment. The robust greenback continues to keep a lid on the precious metals bullish trend.
S&P 500 – Daily Outlook
The New York stock market index SPX is trading at 2706, down -22.75 points and -0.82%. S&P500 is facing a strong support near 2700, a double bottom level. The violation of 2700 can lead SPX towards 2679. The moving averages are suggesting a bearish bias of investors. The RSI and Stochastics have entered the oversold zone. Let’s see if SPX gets a chance to pull back above 2700.
Support Resistance 2706 2735.56 2696.86 2744.7 2682.08 2759.48 Key Trading Level: 2720.78
Gold – XAU/USD – Daily Outlook
Gold traded in a tight range of 1252 – 1261, troubled to manoeuvre off session lows because the greenback remained supported despite a small reversal in intraday risk sentiment, helping safe-haven currencies trim their losses against the dollar.
Technical indicators signal gold will continue to drop. For instance, gold has already violated the 1252 support level which is likely to work as a resistance now. Moreover, the moving averages also suggest a bearish bias of traders.
Support Resistance 1256.9 1266.84 1253.84 1269.9 1248.87 1274.87 Key Trading Level: 1261.87
Investors are advised to monitor the U.S. Final GDP q/q in order to capture further movements in the dollar index, gold, and the U.S. stocks.