Gold prices trading higher today after the UK Parliament rejected Johnson’s Brexit timetable while US-China trade deal improves investor sentiment and. White House adviser Kudlow said tariffs scheduled for December could be canceled if further progress is made. Mixed US macro data and global growth worries have kept market expectations high that FOMC may cut interest rate again the last week of October. However mixed comments from Fed members have added to uncertainty. The FOMC meeting minutes from September revealed that the FED is in favour of more rate cut to avoid economic slowdown.
The precious metal remains supported by weak global economic data, tensions in Syria and protests in Chile and Hong Kong.
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Gold Price Technical Analysis
Gold trading 0.44% higher at $1,494.46 in European trading session as the recent downward correction has cancelled the positive momentum which started three weeks ago from $1,458. Gold price looks trapped between 4,480 and 1,500 the last weeks as traders await more clarity on Brexit and US-China trade issue.
Looking north, the immediate resistance would be met at $1,495.02 today’s high while a break above will open the way for a move up $1,505 the 50-day moving average while a sustained move above 1,5050 will indicate the presence of buyers and a move up to $1,519.49 high from October 3rd can’t e ruled out.
On the downside, immediate support for Gold stands at $1,487.22 daily low and then $1,474.50 the low from October 2nd. Gold has established a strong support zone at $1,458 recent low.