Key Highlights
- Gold price seems to be struggling to hold the $1,450 support area against the US Dollar.
- A major bearish trend line is forming with resistance near $1,463 on the 4-hours chart of XAU/USD.
- The US Goods Trade deficit was $-66.53 B in Oct 2019, down from the last $-70.55 B.
- The US GDP is likely to grow 1.9% in Q3 2019 (Preliminary).
Gold Price Technical Analysis
This past week, gold price started a fresh decline after it failed to climb above the $1,480 resistance against the US Dollar. The price traded below the $1,465 support area and tested the $1,450 support zone.
The 4-hours chart of XAU/USD indicates that the price traded as low as $1,451 and settled well below both the 100 simple moving average (4-hours, red) and the 200 simple moving average (4-hours, green).
It is currently consolidating losses above the $1,450 support area. On the upside, the first key resistance is near the $1,460-$1,462 area. It coincides with the 50% Fib retracement level of the recent decline from the $1,473 high to $1,451 low.
Moreover, there is a major bearish trend line is forming with resistance near $1,463 on the 4-hours chart of XAU/USD. Above the trend line resistance, the 100 SMA is waiting to prevent gains near the $1,473 level.
If there is a successful close above $1,473, gold price could attempt to climb above the $1,480 resistance area. Conversely, the price may perhaps continue to move down below the $1,450 and $1,445 support levels.
Looking at EUR/USD, the pair is struggling to correct above the 1.1040 and 1.1050 resistance levels. Moreover, GBP/USD failed to climb above the 1.2900 resistance area and declined recently.
Economic Releases to Watch Today
- US Initial Jobless Claims – Forecast 221K, versus 227K previous.
- US Durable Goods Orders for Oct 2019 – Forecast -0.8% versus -1.2% previous.
- US Gross Domestic Product Q3 2019 (Preliminary) – Forecast 1.9% versus previous 1.9%.
