Gold Technical Analysis: Testing $1500 Resistance
In our recent technical analysis, with the price of gold correcting down to the $1495 support, the lowest in nearly two months, we immediately recommended buying gold with targets that exceed the $1500 psychological resistance barrier again. Indeed, the price of the yellow metal bounced up to reach the $1505 resistance during Wednesday's trading session. You can refer to the analysis through the technical analysis section of gold to confirm what has been mentioned and return to the direct recommendations page to see the opportunity to buy and where did its profits reach. We also mentioned that global trade and geopolitical tensions persist, which will be a permanent catalyst for gold to rise.
One factor that prompted investors to buy back gold recently was the poor results of US economic indicators, confirming that the world's largest economy is beginning to be adversely affected by the ongoing conflict with China. This is in addition to the fact that tensions over the future of the truce between North Korea and the United States have returned after the recent missile tests, Slowing global economic growth, the possibility of the UK proposals failing to persuade the EU to amend the Brexit deal to avoid an exit without agreement, and halted US dollar gains.
From the US, data from ADP showed that employment in the US non-farm sector rose less than expected in September. Private sector employment increased by 135,000 in September, compared to estimates of an increase of about 140,000. The survey gives an impression of what the US government's official report on US job numbers will be, which is expected to hit weak figures, which will negatively affect confidence in the US currency.
According to the technical analysis of gold: $1500 psychological resistance will remain the key to the strength of the Gold’s upward trend and breaching it means the return of gold price to test the highest levels all the way to the highest level in six years. The closest resistance levels currently are 1512, 1527 and 1555 respectively. On the downside, the nearest gold support levels are currently at 1492, 1485 and 1470 respectively. So far, we still recommend buying gold from every bearish level.
As for the economic data today: The economic calendar contains the announcement of the Australian Trade Balance. The services PMI, producer prices and retail sales from the Eurozone. Services index from the UK. During the US session, we will have jobless claims, ISM services PMI and factory orders.
- Currency Pairs