Comex gold crashing since last week after its peak of 1565$ in first week of September. Since first week of September comex gold is in corrective mode and it was a slow correction last week. Yesterday xauusd took nearly 30$ plunge and gave buyers a big shock as we had a good support around 1470$. Gold is in corrective mode and we may see good base very soon.
Yesterday’s gold crash was not attributed to dollar index strength. We had minor gains in dollar yesterday and even Dow Jones Index was not trading higher. It was later in the day wall street jump to test 27000. Yesterday’s correction was led by sellers and traders who booked profit in their buying from 1300$ odd levels.
Yesterday’s gold correction also led to a speculation that we may have a deal in place. China & US will conclude their talks in October else new tariffs on Chinese goods will kick in. So its make sense to plunge gold before announcement of deal. We just need to wait for official announcements from Washington or Beijing.
Today we have ISM manufacturing data from US & we have Non farm payroll data this Friday with Unemployment rate. I always rate Non farm numbers highest in order to understand US economy. So it will be crucial how these numbers pan out. These numbers will decide the fate of gold price for upcoming weeks.
Currently gold trading at 1462$. Good support in xauusd chart stands at 1455$. If trader break and sustain below 1455$. Then expect good pressure in comex gold till 1450$- 1440$.
Good resistance in gold chart stands at 1476$. If trader break and sustain above 1476$. Then expect good rise in gold till 1482$- 1490$.
Conclusion: Currently gold trend is weak, avoid major buying in this precious metals. Wait for resistance to break in order to initiate buy.
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