Gold price (XAUUSD) is heading lower in Tuesday’s New York session as positive comments regarding a partial deal at the US-China trade talks hit the markets. Earlier today, the Chinese foreign ministry spokesman had made comments indicating that the US statement about the striking of a partial trade deal was correct. The spokesman also said that Beijing does not have any differences in the accounts of the trade agreement outcome provided by Washington.
These comments were seen to be a boost for risk-on sentiment, with gold price down by more than $8 on the day. Gold is now trading at just above 1484, and is approaching its intraday low of 1482.22.
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XAUUSD Intraday Technical Outlook
With risk-on sentiment at play this Tuesday, gold is now testing support levels of 1482.22 (13 August, 18 Sept and 14 October lows). Presently, gold price has extended below the S1 pivot support for the day and looks set to challenge the S2 pivot at 1476. However, XAUUSD needs to break the 1482.22 major support by a 1% penetration to attain the S2 pivot, which is the next logical target.
Below S2, further support on the day is seen at 1470.58 (S3 pivot). However, a rising support trendline connects the lows of gold price action on August 1 and October 1. This line intersects with the S2 pivot, reinforcing this area as a support level. Therefore, price action needs to be strong enough to break this area to be able to target the S3 pivot. Further weakness below this area could target the July 17 former resistance area (now support in role reversal) at 1451.27.
On the flip side, failure to break the 1482.22 support area could lead to a recovery that targets 1491.03 (daily pivot) and possibly 1495.79 (highs of Sep 30 and Oct 14).