The gold price strongly rebounded on Tuesday’s session closed with 0.75% gains as dollar buying dried off.
The Conference Board Consumer Confidence Index, which had increased in September, declined in October. The index down to 98.6 from 103.50 and expectations Index declined from 87.2 last month to 83.9.
The Gold price spends two weeks of time between 1240.00-1275.00 levels after falling from September highs.
US Commodity Futures Trading Commission (CFTC) on Friday (October 21) released its weekly report, as of October 18 the week, hedge funds and fund managers holdings of Comex gold for three consecutive weeks of net long positions, the net more refreshed 7-month low. Gold speculative net long positions fell 16,516 hands, to 137,260 hands. Source: Gold Headlines.
Goldman Sachs in the latest research report , RMB depreciation and property price declines during October are likely to have recently supported Chinese physical gold investment demand in our view”.
“We continue to view any gold sell-offs substantially below $1,250/oz as a strategic buying opportunity”.
“On the bearish side, our economists forecast a higher probability of US rate hikes before year end than the market (GS 75% vs. market pricing c.69%), and expect higher real US interest rates than the market is currently pricing”.
Key risk events:
Sep U.S New home sales forecast 600k vs 609k
Sep Core Durable goods orders forecast 0.2% vs -0.2%
Initial jobless claims forecast 255k vs 260k
Sep Pending home sales forecast 1.2% vs -2.4%
U.S Advance Q3 GDP forecast 2.5% vs 1.4%
The price is trading at 1274.00 on Asia session.
Resistance: 1277.00, 1284.00 and 1290.00
Support: 1270.00, 1265.00 and 1259.00
The price manages to close back above 200 and 20 moving averages finds between 1270.00 and 1268.00 levels. The bulls must close above 1275.00 to erase further bearish view.