Gold prices continue lower for second day in a row giving up 0.01% at $1,468.14 after yesterday’s sharp drop that reached the $1,460 mark a fresh three month lows. Optimism around an upcoming phase one deal between China and US has boosted risk appetite and drove traders away from safe-haven assets such as JPY and gold. The U.S. dollar index (DXY) jumped to a fresh three-week high. The U.S. jobless claims fell 7,000 in the week ended November 2nd, to 211k from 218k.
The world gold council reported earlier this week that India’s gold demand is forecasted to drop by 8% to around 700 tonnes – the lowest level since 2016. India’s gold consumption in 2Q fell to 123.9 tonnes.
Investors expect that Federal Reserve is likely to pause interest rate cuts after delivering three-straight rates cuts earlier this year. Low U.S. benchmark interest rate pressures the dollar and bond yields, increasing the demand for non-yielding metals, like Gold. The ECB kept interest rates unchanged and continued its bond repurchase program of €20 billion per month.
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Gold Prices Resistance and Support Levels
The gold price trades below 100-day moving average for the first time since May. On the downside now, first support for gold at $1,465.60 today’s session low and then at $1.460 yesterday’s low, a close below that support line might have negative implications and might attract more bears that will drive the price down to $1,438 the August 5th low.
On the upside, first resistance would be met at $1,472.87 today’s top while a move above will open the way for a move up to $1,476 the 100-day moving average and then at $1,492.91 the 20-day moving average before an attempt to return above the $1,500 mark.More content
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