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Gold keeps downward vector

Sep 30 2019, 04:22 PM (BDT) | Fortfs.com

Gold opens the trading week in the red zone against the backdrop of a recovery in major stock indexes and continued pressure from the dollar.

The main focus of investors remains on the development of the trade conflict between the US and China. On Friday, media reported that the presidential administration was looking for ways to limit the flow of US portfolio investment in China and delisting Chinese companies from US stock exchanges to increase pressure on Beijing before a new round of trade negotiations. But later, Monica Crowley, a spokeswoman for the U.S. Treasury Department, denied the allegations.

Ambiguous economic statistics from China could also exert some pressure on the yellow metal. According to official data for the month, manufacturing PMI rose from 49.5 to 49.8 points, while data from Caixin indicate an increase from 50.4 to 51.4 points. Official figures still indicate a decline in production, as the figure remains below 50, and the Caixin report indicates an increase in production activity.

Today in the USA there are no important economic reports, therefore the main impact on trading will be provided by the situation on stock exchanges and world trade news.

On the chart, the bears continue to increase pressure on the lower boundary of the horizontal channel 1485.00-1523.00. This increases the likelihood of a breakdown of this mark and the further development of a downward movement in the direction of the level of 1460.00.

Resistance Levels: 1500.00, 1510.00, 1523.00;

Support Levels: 1485.00, 1460.00, 1455.00.

The main scenario is a breakdown of support at 1485.00 and the further development of the downward movement.

An alternative scenario is a breakdown of resistance at 1500.00 and an increase to 1510.00.

The market has a mixed news background. The chart is dominated by bearish signals. Inside the day we consider shorts from the levels of 1500.00 and 1510.00.

 

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