XAUUSD Technical Overview:
Week Pivot: 1191.82
Week Key Resistance: 1200.74 - 1206.16 -1215.16
Week Key Support: 1182.90 - 1177.4 - 1168.48
Technical Indicator:
Moving Average: SMA 200 (1196.65) & SMA 55 (1198.28) strong resistance for gold.
RSI: The indicator shows downward momentum & having strong resistance at 53.41 level (See in chart)
Technical Trade Idea for week:
Most Likely Scenario: Long above 1191.40 with target 1200 - 1205 in extension.
Alternative Scenario: Short below 1191.40 with target 1182 - 1176 in extension.
Fundamental:
Gold hit a fresh six-week low late in the week, but a strong performance in silver, coupled with profit-taking in the U.S. Dollar ahead of the week-end, helped the market recover nearly half of the week’s loss.
Although the direction of gold prices will be primarily influenced by the U.S. Dollar. Traders should also pay attention to the price action in the silver market.
Silver is being supported because it is relatively cheap. Additionally, it could be attracting buyers due to inflationary expectations and industrial demand during the current economic expansion. This makes it a more attractive asset relative to gold. This may be just enough to bring in the buyers. Now that the news is out there, look for heightened volatility.
Economic news that could influence the U.S. Dollar and gold prices next week are U.S. ISM Manufacturing PMI, ISM Non-Manufacturing PMI, and the Balance of Trade.
Additionally, investors will get the opportunity to react to the September Non-Farm Payrolls report. The headline number is expected to show the economy added 185K jobs last month. Average Hourly Earnings are expected to have risen 0.3% and the Unemployment Rate is expected to dip to 3.8%.
The dollar will continue to be influenced by Treasury yields and worries over Italy. We’re going to approach the market early in the week as if a stronger dollar will make gold weak. However, we’ll quickly shift to an upside bias if another rally in silver takes control of the gold market and drags prices higher.
Thanks
YoCryptoManic