Yellow Metal Gold Weaken After China Cancels Trade Meeting
XAUUSD Technical Overview:
Pivot: $1200.20
Key Resistance: $1199.85 - $1204.28 - $1207.47 - $1211.89
Key Support: $1194.33- $1191.56 - $1188.00 - $1186.66
Day Trading Range: $1204 - $1186
Technical Indicator:
RSI: The indicator lacks upside momentum, moving below 50 level.
Moving Average: SMA 100 ($1199.65), SMA 200 ($1198.45), SMA 50 ($1201.50) strong resistance for Gold today.
Technical Trade Idea:
Most Likely Scenario: short positions below 1200.20 with targets at 1193.25 & 1189.85 in extension.
Alternative scenario: above 1200.20 look for further upside with 1204.55 & 1207.10 as targets.
Overall,Driving the price action in gold last week was the U.S. Dollar. For most of the week, gold was underpinned by a weaker U.S. Dollar. On Friday, however, gold managed to give back all of its weekly gains when the dollar rebounded to the upside. Driving the U.S. Dollar’s price action was the investor response to fresh tariffs by the U.S. and China.
The trade dispute and the dollar will continue to drive the price action in gold this week. However, this week, the dollar could strengthen and gold could weaken. This is because China called off the trade talks with the United States and said it wouldn’t meet with high level negotiators until after the November mid-term elections.
Also contributing to the movement in gold will be the outcome of this week’s two-day Federal Open Market Committee meeting which culminates with the Fed’s interest rate and monetary policy decision on Wednesday, September 26.
Although the Fed is widely expected to raise its benchmark interest rate during the meeting, gold traders will be primarily focused on the direction the Fed will chart ahead. Traders essentially want to know how aggressive the Fed will be in increasing rates in the future.
Thanks
YoCryptoManic
Pivot: $1200.20
Key Resistance: $1199.85 - $1204.28 - $1207.47 - $1211.89
Key Support: $1194.33- $1191.56 - $1188.00 - $1186.66
Day Trading Range: $1204 - $1186
Technical Indicator:
RSI: The indicator lacks upside momentum, moving below 50 level.
Moving Average: SMA 100 ($1199.65), SMA 200 ($1198.45), SMA 50 ($1201.50) strong resistance for Gold today.
Technical Trade Idea:
Most Likely Scenario: short positions below 1200.20 with targets at 1193.25 & 1189.85 in extension.
Alternative scenario: above 1200.20 look for further upside with 1204.55 & 1207.10 as targets.
Overall,Driving the price action in gold last week was the U.S. Dollar. For most of the week, gold was underpinned by a weaker U.S. Dollar. On Friday, however, gold managed to give back all of its weekly gains when the dollar rebounded to the upside. Driving the U.S. Dollar’s price action was the investor response to fresh tariffs by the U.S. and China.
The trade dispute and the dollar will continue to drive the price action in gold this week. However, this week, the dollar could strengthen and gold could weaken. This is because China called off the trade talks with the United States and said it wouldn’t meet with high level negotiators until after the November mid-term elections.
Also contributing to the movement in gold will be the outcome of this week’s two-day Federal Open Market Committee meeting which culminates with the Fed’s interest rate and monetary policy decision on Wednesday, September 26.
Although the Fed is widely expected to raise its benchmark interest rate during the meeting, gold traders will be primarily focused on the direction the Fed will chart ahead. Traders essentially want to know how aggressive the Fed will be in increasing rates in the future.
Thanks
YoCryptoManic