Gold slumped as US President Trump said on Tuesday he has instructed his representatives to stop negotiating with Democrats for a new stimulus package. This dashed hopes of further monetary impetus to the economy and pushed up the US dollar index from a two week low. COMEX Gold also tanked from a two week top amid these cues and broke under $1900 per ounce mark. The commodity is down 1% to trade at $1896 per ounce right now.
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. Spot gold was flat at $1,877.15 per ounce. Prices fell 2% on Tuesday hitting a one-week low of $1,874.05. U.S. gold futures were down 1.4% at $1,882.90. The dollar index was up 0.2% against rivals. 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. Top U.S. and European central bankers on Tuesday called for renewed government spending to support families and businesses as the battle against the coronavirus-triggered recession enters a newly critical phase. The U.S. trade deficit surged in August to the largest in 14 years with imports climbing again, suggesting that trade could be a drag on economic growth in the third quarter. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.32% to 1,271.52 tonnes on Tuesday. India’s gold imports in September fell 59% from a year earlier to the lowest level in four months, a government source said on Tuesday. Silver rose 0.7% to $23.25 per ounce.
TREND : WEAK BULLISH / SIDEWAYS
Time : 07/10/2020
Pivot : 1891.74
Technical View : LONG ABOVE 1901.71
Target : 1911.68, 1940.28, 1959.62
Technical View : SHORT BELOW 1877.54
Target : 1863.34, 1844.11, 1815.41