Gold Price Consolidation Pattern Continues around $1,490
Gold prices trading lower today after two consecutive sessions with gains as the risk appetite returns to markets. Central banks is back on focus today with ECB meeting later today. Investors expectations are low as they don’t expect to announce any measures today. Fed next week expected to cut interest rate for the third consecutive time. Geopolitical tensions eased in Syria after USA lifted the sanctions on Turkey as it complied with the ceasefire agreement.
Gold trading 0.16% lower at $1,489.15 in consolidation mood around $1,400 as the recent downward correction has cancelled the positive momentum which started four weeks ago from $1,458. Gold price looks trapped between 1,480 and 1,500 the last weeks as investors await more clarity on Brexit and US-China trade tensions.
On the downside, first support for gold stands at $1,487.91 daily low and then $1,474.50 the low from October 2nd. Gold has established a strong support zone at $1,458 recent low. On the upside, the immediate resistance would be met at $1,493.53 today’s high while a move above will open the way for a move up $1,504.50 the 50-day moving average while a sustained move above 1,505 will indicate the presence of buyers and a move up to $1,519 high from October 3rd can’t be ruled out.