Mr. Todd Horwitz, the BubbaTrading.com 's chief market strategist, said the current state of gold was extremely overbought, which would lead to a two-way surge in gold prices. It would be certain that the price of gold and silver would have a major trend. While we still do it, the key question lies in the trend from these levels.' If the price of gold falls on a 50-day average of $1503 per ounce, the upward trend line since the last five weeks, if the price of gold falls below $1503 per ounce, can limit the short-term decline in the price of gold, even further, 'said Mr. Anil Panchal, an analyst at FXStreet. The support is at a low of October, close to $1455.50 per ounce. On the other hand, Panchal points out that the next drag in gold is in the downward trend line of $1518/ ounce, followed by a high point of $1535 per ounce at the end of September and $1557 per ounce, a key force that investors need to focus on. The Agency's economies.com notes that the trend in the gold bullish trend remains the same, and whether this upward trend will continue on the trading day will depend on the availability of the daily chart over US $1489.00 per ounce. and it is worth noting that the yellow The first major target for gold bulls is $1535.00 an ounce.
The overnight dollar index rose steadily, stopping after five consecutive trading days of decline, trading at 9754 on a longer positive basis. At the same time, the three major stock indexes of the United States hit an all-time high. Despite the poor performance of the latest U.S. economic data, the dollar has rebounded strongly. Monthly orders for U.S. factories fell faster than expected on Monday, with slightly lower-than-expected business spending on equipment, suggesting that trade conflicts continue to weaken U.S. manufacturing. The monthly rate of factory orders in the United States fell 0.6 percent in September, with two months in a row in a negative range, with the previous value down 0.1 percent and expected to fall 0.5 percent, according to the data. September factory in the United States Orders reports show that global manufacturing is slowing, with recent surveys of purchasing managers' indices in the United States, the UK and much of Asia showing factory activity slowing across the country in October as trade uncertainty persisted.
Brown Brothers Harriman Bank (BBH) analysts believe the dollar will gain a foothold earlier this week, but difficult to maintain. The dollar index rose for the first time since October 25, after falling for a week in a row. Given the lack of significant data or events in the United States this week, we think it is difficult for the dollar to maintain a significant upward momentum, so gold is still likely to rebound. One of the most important price drivers in the commodity sector is still trade negotiations between China and the United States, according to macro-(Capital Economics) analysts. Looking forward to the future, the trade news between China and the United States will become the main driving force for the trend of gold prices. Juliu S Baer analyst Carsten Menke, "In the recent weeks, gold has been in an interval, taking into account that concerns about the recession have faded. In addition, some progress has been made in trade negotiations, which is a real obstacle to the rise in gold prices." Menke, "The current global economic growth, the uncertainty associated with trade tensions, and the weakening of the dollar, are the overall context of gold. These factors continue to exist at the end of the year 2020. Based on these factors, we believe that gold will go higher."
(Picture Source:Sogou)
Analysts at ABN Amro said demand for the dollar remained strong while risk sentiment could weaken the dollar's ability to avoid risks. As the dollar strengthened, optimism in trade negotiations between China and the United States and fears of a global economic slowdown receded, investor risk appetite rebounded, gold suffered a sell-off and gold prices tumbled all the way down on Monday.Royal Bank of Canada (RBC) analysts said Monday that gold prices are likely to continue trading within the range in the short term. For now, gold continues to fluctuate in the $1500 / oz region and could then rise to $1550 an ounce as uncertainty remains about the political situation in the United States. Gold is underpinned by global uncertainties such as Brexit, turmoil in Chile and geopolitical risks in the Middle East.
This trading day will focus on the RBA interest rate resolution, US trade accounts and ISM non-manufacturing PMI, euro zone PPI. In addition, 23: 00 Beijing time on Tuesday, the US ISM non-manufacturing purchasing managers' index (PMI) will be released in October, the data is expected to rise slightly from 52.6 last month to 53.2. If the data is weak again, it could raise expectations that the Fed will cut interest rates again by the end of the year, which will weigh on the dollar and boost gold.
In early trading on November 5th, international spot gold traded at $1506.80 an ounce. Overnight gold prices concussed all the way back, mainly affected by a stronger dollar, gold prices hit a low of $1504.26 an ounce. For the time being, gold prices have continued to fluctuate, earlier accelerating to a relatively low of $1505.89 an ounce.
