The yellow metal prices extended its early-day bullish rally and remained well bids around above the 1,900 level. However, the bullish sentiment around the bullion prices could be associated with the broadly weaker U.S. dollar. The risk-on market sentiment undermined that. Meanwhile, the U.S.’s prevailing political uncertainty also pushed the U.S. dollar down for the second consecutive day. Thus, the U.S. dollar losses could be considered one of the key factors that kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar. Apart from this, the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe also favoring the yellow-metal bulls.
In the meantime, the U.S. geopolitical tension with the Middle East and China provided an additional boost to the safe-haven metal prices. On the contrary, the optimism over a potential vaccine/treatment for the highly infectious coronavirus and hopes of the further stimulus package keep the market trading sentiment bullish, which could be considered as the key factor that cap further upside momentum for the gold prices. Whereas, the Trump recovery from the COVID-19 infection also offers an additional reason for the market traders to remain hopeful. The yellow metal prices are currently trading at 1,909.87 and consolidating in the range between 1,893.78 – 1,912.96.
Despite the ongoing Sino-US tussle and worries concerning the coronavirus (COVID-19) crisis, the market trading sentiment extended its early-day positive tone and remained supportive by combining factors. As in result, the S&P 500 Futures gain over 0.40%, whereas Japan’s Nikkei slips four points to 23,643 as of writing. Hence, the basis for the risk-on market trading bias could be connected to the positive headlines implying that the discussions between House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over the U.S. stimulus package resumed overnight. While President Donald Trump announced that discussions with Congress have resumed despite stopped the coronavirus (COVID-19) stimulus talks until the Nov. 3 presidential election. However, this helped the market’s risk sentiment and undermined the U.S. dollar’s safe-haven demand.
Apart from this, Trump continues to recover from the COVID-19 infection. Whereas the White House physician Sean Conley said that Trump completed his therapy course, and his condition remains stable since returning to the White House on Monday.
Across the ocean, the tensions between the U.S. and China and the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe keep challenging the market risk-on tone. Although the Dragon Nation has recently started facing global pressure against its treatment of Uighur Muslims, 18 Iranian banks were sanctions off-late by the U.S. State Department to curb Tehran’s financial access help further safe-haven yellow metal.
At the coronavirus front, the ongoing rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable tomorrow. As per the latest report, Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid while the calls of closing the pubs and restaurants in the U.K. have been out and clear off-late. Looking forward, the market traders will keep their eyes on updates surrounding the Sino-US tussle and stimulus headlines. Whereas China’s return and Caixin Services PMI will be key to watch. In the meantime, the
Daily Support and Resistance
S1 1847.32
S2 1874.78
S3 1887.18
Pivot Point 1902.24
R1 1914.64
R2 1929.7
R3 1957.16
Gold has risen distinctly to trade at 1,912 marks, but the neutral candle’s closing below 1,912 levels implies mixed bias amongst traders. Hence, another formation of bearish engulfing or tweezers top pattern may begin bearish correction/retracement in gold. On the downside, gold may gain support at 1,906 and 1,899. Conversely, a bullish breakout of 1,912 stand-level may prolong the buying trend until the 1,919 level.
Entry Price – Sell 1909.74
Stop Loss – 1915.74
Take Profit – 1902.24
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$750
Profit & Loss Per Micro Lot = -$60/ +$75
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