Gold Price Breaks the Consolidation Pattern and Continues Above $1,500

Gold prices continue north for fourth consecutive day trading breaking the critical $1,500 zone yesterday after weaker US macro data which further increase the bets on the interest rate cut by Fed next week. The ECB kept interest rates unchanged and continued its bond repurchase program of €20billion per month. On the Brexit front uncertainty returns after PM Johnson is expected to propose general election by December 12th.

Geopolitical tensions eased in Syria, after USA lifted the sanctions on Turkey as it complied with the ceasefire agreement.

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Gold Technical Levels

Gold trading 0.12% higher at $1,505.26 as the precious metal momentum turns positive after the price breached the 20-day moving average yesterday while today is trading slightly above the 50-day moving average.

On the upside, the immediate resistance would be met at $1,506.97 today’s high while a move above will open the way for a move up to $1,519 high from October 3rd. On the downside, first support for gold stands at $1,500.70 daily low and then $1,493.03 the 20-day moving average. Gold has established a strong support zone at $1,458 recent low. The precious metal remains well supported by weak global economic data, tensions in Syria and protests in Chile and Hong Kong.

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