The price of gold has been stuck in a narrow range, and today is also unlikely to feature any significant triggers. It has regained downward momentum over the past four weeks after traced out a double top pattern at $1518.00. Trade talk optimism dented the strong bullish trend.
We expect the consolidation phase to remain in place in the day ahead. It could accelerate further if key support at $1445.00 and $1440 is broken decisively.
Building pessimistic sentiment on the latest headlines of the latest HK bill could apply brakes to the price of gold at a key support level.
NAB cited this morning, “China angry on US Hong Kong Bill, but will it impact the trade deal?”.
ING said, “we believe that prices will be dictated by the same themes as this yea” in its 2020 Commodity outlook.
In the article, the authors Warren Patterson and Wenyu Yao said, “Looking to 2020, we believe that the same themes will dictate prices as this year. As a result of trade uncertainty and concerns over global growth, we do see the upside to gold prices from current levels. While if the US Fed turns increasingly more dovish, this only provides further upside. We currently forecast that gold prices will average around US$1,475/oz over the course of 2020.”
Technical support located at $1450 below here focuses shifts to $1445 and $1440. The daily indicators are remaining mixed with RSI lack conviction, and the oscillator has turned bearish.
Flipside, a move above $1460, could allow the price to bounce towards the key resistance level located at $1463-1464 levels.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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