Today’s Gold Analysis Overview:
- The overall of Gold Trend: Bullish
- Today's Gold Support Points: $4100 – $4060 – $3990 per ounce.
- Today's Gold Resistance Points: $4160 – $4190 – $4250 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $4190 with a target of $3900 and a stop-loss at $4230.
- Buy gold from the support level of $4050 with a target of $4200 and a stop-loss at $4020.
Technical Analysis of Gold Price (XAU/USD) Today:
Investors have increased their demand for buying gold bullion as a safe haven once again, given the continuation of the US government shutdown. The shutdown adds to the ambiguity of financial market performance in the coming days, as it prevents the release of crucial economic data that determines the future policies of the US Federal Reserve and the reaction of US economic sectors to the longest government shutdown in history. According to gold trading company platforms, the gold price index is stable higher around the $4145 per ounce resistance level at the time of writing the analysis.
Continued US Shutdown Supports Gold Market
According to gold analysts' forecasts, the upward trend of gold prices is gaining positive momentum amid the continued US government shutdown. Recent trading shows the gold price index rose on expectations of a US interest rate cut by the Federal Reserve, which will enhance the attractiveness of the yellow metal, which yields no interest.
On the US labor market front, the jobs firm ADP estimated that the US private sector lost a total of 11,250 jobs weekly during the four weeks ending October 25. Overall, economic figures from alternative sources, such as ADP, have gained more weight during the government shutdown period. Accordingly, commodity market experts believe that the weakness of recent US economic data increases the probability of an interest rate cut by the Federal Reserve in December. Analysts added that a significant slowdown in the US economy is clearly expected to emerge once data publishing resumes.
Technical Indicators Confirm Gold's Upward Trajectory
According to performance across trusted trading company platforms and the daily timeframe chart, spot gold prices are moving steadily higher. As mentioned before, stability around and above the psychological level of $4000 per ounce will continue to support the upward move. Currently, the 14-day Relative Strength Index (RSI) is around a reading of 59, confirming the upward shift and awaiting stronger gains before reaching the overbought zone. This could happen if gold bulls succeed in breaking above the $4220 per ounce resistance. Supporting the bulls' trajectory is the recent upward turn of the MACD indicator lines.
Trading Tips:
The strategy of buying gold on every strong price decline will remain the best and should be continued for a longer period of time, but without taking excessive risk and by distributing trades across multiple entry levels.
Ready to trade our Gold forecast? We’ve shortlisted the most trusted Gold brokers in the industry for you.