Gold prices trading slightly higher today as the positive developments from Brexit and US-China trade deal improve investor sentiment and pressures safe-haven assets such as Yen and Gold. White House adviser Larry Kudlow said tariffs scheduled for December could be withdrawn if progress is made. Last week a report from World Gold Council, showed that the global gold-backed ETFs hit an all-time high, adding 75.2 metric tons of gold in September to a total of 2,808 metric tons. The Fed meeting minutes from September said that the FED is in favour of more rate cut to avoid economic slowdown. Mixed comments from Fed members has raised uncertainty about next monetary policy move however mixed economic data and weak global growth has kept hopes high an interest rate cut may happen at next meeting.
Special free webinar for traders: Price Action & Market Structures for 2019. Register now.
Gold Resistance and Support
Gold trading 0.26% higher at $1,488 in early European trading session as the recent downward correction has cancelled the positive momentum which started two weeks ago from $1,458. Gold price trades on slippery ground below the 20 and 50-day moving average. Looking south, immediate support for Gold stands at $1,480.76 daily low and then $1,474.50 the low from October 2nd. The precious metal has established a strong support zone at $1,458 recent low. On the flip side, resistance would be met at $1,488.66 today’s high while a break above will open the way for a move up $1,493 the 20 day moving average and then at $1,519.49 high from October 3rd.