The Gold price set back on Wednesday’s session, probably a double top placed. This month as of now the dollar index rose nearly 4% besides gold price down nearly 6%. The gold price slips back below 200 daily moving averages again.

The world’s largest gold ETF – SPDR GOLD TRUST positions to reduce the 1.49 percent the previous day, the current positions of 942.59 tons.

Key risk events:

  • 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%
  • Friday- Advance Q3 GDP forecast 2.5% vs 1.4%

Barclays US third quarter GDP growth forecast from the 2.6% to 3%.

Nomura- US core inflation is between 1.7% and 2.2% depending on which measure one looks at, and the unemployment rate is below 5%. This provides the right backdrop for the Fed to hike in December and for the market to price hikes for 2017.

The world’s largest gold producer, Barrick Gold Corporation: Company third quarter gold production was 1.38 million ounces. 2016 gold production of 525-555 million ounces previously estimated 500-550 million ounces.

The price is trading at 1267.00 at Tokyo session.

Support: 1264.00, 1260.00-1258.00 and 1249.00

Resistance: 1270.00-1272.00, 1277.00 and 1286.00

Ahead of tomorrow’s GDP data, the price remains in a base building process between 1260.00-1258.00 levels. If slips below 1250.00-1246.00 exists, which are the key levels to the gateway to 1240.00,1236.00 and 1232.00. Final destination exists at 1205.00-1200.00.

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The high probability of Fed December rate hike and less chances of Trump victory in the next month U.S election attracts the U.S dollar.