Gold price trading higher for second day in a row after the impressive rebound from weekly low at $1,486 as risk-off returns to markets as a no-deal Brexit looks now as a possible scenario. On the US-China trade tensions front, the situation is getting darker ahead of the negotiations restart later this week, as China said it would retaliate after US Government put Chinese technology companies on blacklist. The negotiations starting on Thursday, ahead of an increase in U.S. tariffs on $250 billion worth of Chinese imports, to 30% from 25% on 15th October 2019. Under these circumstances investor’s appetite turned to safe-haven assets such as gold and Yen. According to World Gold Council, 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.
Investors await the release of minutes from September FOMC meeting due today.
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Gold Support and Resistance
Gold trading on a firm note in early European trading session keeping the positive momentum which started from the recent lows at $1,458. On the upside, resistance would be met at $1,511.32 today’s high while a break above will open the way for a move up to 1,519.49 high from October 3rd. On the flipside, immediate support for Gold stands at $1,503 daily low and then $1,500 psychological support. The precious metal has established a strong support zone at $1,458 recent low. Bulls are in control of gold prices as long as the price holds above $1,500. A break below will question the intraday rebound and might attract some offers that can re-establish the negative trend with a move down to 1458.
Gold prices have been oscillating around the $1,500 mark the last trading sessions on a purely technical basis but long term prospects still remains bullish for gold.