In Wednesday’s trading so far, the yellow metal turned south after failing to regain the $1900 barrier once again following the Presidential election debate. Bears await the US ADP jobs, GDP and sentiment on Wall Street, FXStreet’s Dhwani Mehta reports.
See – Gold: Bearish pressures mounting – OCBC
Key quotes
“The debate was largely unimpressive, although US President Donald Trump’s warning on the election outcome delay knocked down the risk sentiment and refueled the US dollar’s demand as a safe-haven. Further, the sell-off could be also chart-driven. It remains to be seen if the dollar sustains the bounce ahead of the US ADP and GDP data while the sentiment on Wall Street will also play a key role in gold’s price movement.”
“The rejection from the $1900 mark has prompted the bears to take out the 21 and 200-hourly Simple Moving Averages (HMA) support levels, with the upward-sloping 50-HMA support at $1881 next in sight.”
“The hourly Relative Strength Index (RSI) has turned flat while at the midline, suggesting a tepid pull back from the daily lows. However, recapturing the 200-HMA at $1894 on a sustained basis could only revive the upside momentum towards $1900 and above.”
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