Today’s Gold Analysis Overview:
- The overall of Gold Trend: Neutral
- Today's Gold Support Points: $3960 – $3910 – $3840 per ounce.
- Today's Gold Resistance Points: $4050 – $4090 – $4150 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $4110 with a target of $3880 and a stop-loss at $4170.
- Buy gold from the support level of $3870 with a target of $4100 and a stop-loss at $3820.
Technical Analysis of Gold Price (XAU/USD) Today:
As was the performance at the end of last week, gold prices started the new week with an attempt to rise, but the gains this time did not exceed the $4030 per ounce resistance level before prices settled back around the psychological level of $4000 per ounce, awaiting factors of strength for both the bears and the bulls to steadily launch in one of the two directions.
According to gold trading platforms, the gold price fell at the start of Asian trading yesterday (Monday) following reports that the Chinese Ministry of Finance canceled tax incentives on sales of the yellow metal. According to commodity market experts, investors in China were disappointed with the new legislation issued by the Ministry of Finance, which canceled old tax incentives on gold.
Analysts added that individual investors are no longer able to recoup the value-added tax (VAT) when selling gold purchased from the Shanghai Gold Exchange. This regulatory move could have far-reaching consequences, as China is one of the world's largest consumers of gold.
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Factors affecting the gold trading market
Across reliable trading company platforms, spot gold prices attempted to rise as investors digested the US-China trade agreement concluded last week, which eased market tensions in the short term but did not address the fundamental disagreements between the two countries.
However, further price gains are capped by expectations of a US interest rate cut in December. Meanwhile, traders are now looking ahead to upcoming US economic data, including the Institute for Supply Management (ISM) survey and the ADP private-sector jobs report, both due later this week.
China’s Gold Tax
In the latest news dominating gold investors' sentiment, China abolished a long-standing tax incentive on gold, which will no longer allow retailers to offset VAT when selling gold. This law covers both investment products, such as high-purity gold bars, and non-investment uses, including jewelry and industrial materials. The move is expected to boost government revenues, but it will also increase the cost of buying gold for Chinese consumers.
In other news, the United States is expected to suspend port fees for a year on Chinese-linked vessels starting next week, according to Bloomberg reports, as the two countries ease tensions in a maritime dispute that has become a major point of contention in the trade war. As of November 10, the US will temporarily suspend measures designed to counter China's dominance in shipping, the White House said in a fact sheet.
Meanwhile, Beijing has said it will suspend its countermeasures. During the one-year suspension, the US will negotiate with China on the findings of its investigation into China's leadership in the maritime industry, the statement said. The US will also seek shipbuilding opportunities with South Korea and Japan, two countries often seen as counterbalancing Chinese vessels.
Technical Indicators Support Gold's Neutrality
Based on the daily chart performance above, it is clear that the gold price trajectory remains neutral, confirmed by technical indicator readings. The 14-day Relative Strength Index (RSI) is stable around a reading of 51, close to the neutral line. Simultaneously, the MACD indicator lines are at the beginning of a downward turn. Overall, stability around and above the $4000 per ounce resistance level will give the bulls chances to push higher if gold's supportive factors—global trade and geopolitical tensions, global central bank gold bullion purchases, and the continuation of the US government shutdown (which prevents the release of economic data needed by markets to predict the future of US interest rate policies)—revive.
A successful breakout to the $4085 and $4130 per ounce resistance levels would further strengthen the bullish scenario for gold. Conversely, over the same timeframe, the $3880 support level will remain a crucial area for bears to maintain strong and sustained control over gold trading.
Trading advice:
You can consider buying gold from the support level of $3880 per ounce, but without risk.
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