Trump abandoned stimulus talks, Gold fell to one week low
Gold prices on Wednesday hovered near a one-week low hit in the previous session, after U.S. President Donald Trump halted new stimulus talks, bolstering the dollar. Prospects for more aid for Americans struggling through the COVID-19 pandemic and U.S. airlines seeking to avert a wave of layoffs crumbled on Tuesday when Trump ended negotiations until after the November election. U.S. and European central bankers called for renewed government spending to support families and businesses as the battle against the coronavirus triggered recession enters a newly critical phase, giving some support to gold on lower levels. Economic calendar is fairly light today on data front, although market participants will keep an eye on the FOMC minutes scheduled later in the day, wherein comments from the fed governor will be in focus. Holdings in SPDR gold Trust, the world’s largest gold backed exchange traded fund, fell 0.32% to 1271.52 tonnes on Tuesday.
Technical: H4 resistance at $1,916 held back buyers, with the candles settling the session just north of H4 support coming in at $1,871. Daily price also receded lower from resistance at $1,911, aided by trend line resistance, extended from the high $2,075. Shaped in the form of a bearish outside day reversal, the daily chart reveals scope to approach support at $1,841. While both the daily and H4 timeframes eye lower levels, traders might want to take into account that weekly price remains circling a support level at $1,882. In addition to this, the trend in this market has faced decisively north since 2016.
Sellers are likely monitoring H4 support at $1,871 today, as a push through here shines the spotlight on H4 support at $1,835, which sits just under daily support at $1,841 (the next downside target on the daily timeframe). Consequently, a H4 close below $1,871 could trigger bearish scenarios, while a decisive rejection from $1,871 suggests the pendulum may swing in favour of weekly bulls off support at $1,882.
Technical: H4 resistance at $1,916 held back buyers, with the candles settling the session just north of H4 support coming in at $1,871. Daily price also receded lower from resistance at $1,911, aided by trend line resistance, extended from the high $2,075. Shaped in the form of a bearish outside day reversal, the daily chart reveals scope to approach support at $1,841. While both the daily and H4 timeframes eye lower levels, traders might want to take into account that weekly price remains circling a support level at $1,882. In addition to this, the trend in this market has faced decisively north since 2016.
Sellers are likely monitoring H4 support at $1,871 today, as a push through here shines the spotlight on H4 support at $1,835, which sits just under daily support at $1,841 (the next downside target on the daily timeframe). Consequently, a H4 close below $1,871 could trigger bearish scenarios, while a decisive rejection from $1,871 suggests the pendulum may swing in favour of weekly bulls off support at $1,882.