Comex gold crashed from 1555$ to test 1488$ in last 3-4 trading sessions. Delayed tariff on Chinese goods caused this correction. Additional tariff on chinese goods worth $250 billion was suppose to start from 01st October. But president announced that Chinese officials requested him to postpone the tariffs. He tweeted that now new tariff will kick in from 15th october instead 01st. This news driven dow jones nearly to its lifetime high as its trading at 27300. Good DJIA Index also contributing in gold weakness. Dollar Index also roaring since last friday which is major reason behind crash in xauusd.

Today we have ECB monetary policy which is again a crucial event. Keep an eye what chairman says and how ECB tackle slowdown. Europe maybe under pressure after excellent performance by US economy. We may see more step by ECB today as slowdown is hampering europe’s economy. Brexit also playing well with investors and we may see some final move in few weeks regarding Brexit.

Currently gold price is trading at 1497$. Good support in xauusd chart stands at 1487$. If trader breaks and sustain below 1487$. Then expect good pressure in comex gold till 1480$- 1470$.

Resistance in comex gold chart stands at 1501$. If trader breaks and sustain above 1501$. Then expect good rise in xauusd till 1509$- 1517$.

Conclusion: Today we have major ECB events which would be deciding factor for gold price today. For now gold trend is weak till is not breaking 1501$. Keep a very strict stop loss in gold or silver position as markets are pretty volatile.

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By marafat

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