Gold tanked last week as sentiments remained stressed in commodities. Gold has moved lower amid sustained slide in equities and the break under $1900 per ounce is keeping buying limited now. Gold continues to behave like a risky asset, moving in tandem with equities. The US dollar index has surged above 94 mark to hit a two month high. Gold tested around two month low of $1851 per ounce following this.
Gold steadied on Monday as the dollar rally took a pause, while traders were on sidelines as political uncertainty built ahead of the first presidential election debate between U.S. President Donald Trump and his Democratic rival Joe Biden this week. Spot gold was little changed at $1,860.19 per ounce. U.S. gold futures were down 0.1% at $1,864.50.The dollar index was down 0.1% against rivals, slightly off a two-month peak hit in the last session. Trump and Biden will have their first presidential election debate on Tuesday. Investors also looked for any signs of further stimulus after U.S. House Speaker Nancy Pelosi said on Sunday a deal could be reached with the White House on a coronavirus relief package and that talks were continuing. New orders for key U.S.-made capital goods increased more than expected in August and shipments raced to their highest level in nearly six years, suggesting a rebound in business spending on equipment was underway after a prolonged slump. Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to Sept. 22, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.02% to 1,266.84 tonnes on Friday. Physical gold demand limped higher in top Asian hubs last week, with dealers in India easing discounts to the lowest level in six weeks, as a drop in prices saw a little interest return in the precious metal.
TREND : BEARISH
Time : 28/09/2020
Pivot : 1864.07
Technical View : LONG ABOVE 1869.99
Target : 1881.18, 1893.17, 1909.33
Technical View : SHORT BELOW 1858.45
Target : 1852.84, 1840.94, 1829.81