Gold sits pretty in $1500 handle ahead of trade talks
|- The price left a daily doji candlestick on the charts with the price closing above the 1500 psychological figure again.
- US and Chinese trades are set to start again this week.
The yellow metal, gold, is relatively flat at the start of this week with both Australia and China out on holidays. The price is back above the psychological $1,500's and sights are set for higher levels as we head over to trade talk territories. At the time of writing, Gold is trading at $1,508 between a tight range of $1,508.60 and $1,509.39.
Last Friday, it was all about the US jobs data which disappointed and while the data disappointed on the whole, the unemployment rate hit a cyclical low of 3.5% in September, from 3.7% in August, and is now at a level not seen since December 1969 which was the US Dollar's savour on the day.
"Meanwhile, US average hourly earnings missed expectations and came in unchanged in September (surveys expected a 0.2% m/m gain). On a yearly basis, average hourly earnings decelerated to 2.9% and are now at their lowest level since mid-2018,"
the analysts at ANZ bank explained.
US trade talks a non-starter
US and Chinese trades are set to start again this week. However, there are already reports that China is not about to renegociate on any of the demands that have been holding up progress. In a Bloomberg article, it was told that Vice Premier Liu He said to dignitaries that he would, "bring an offer to Washington that won't include commitments on reforming Chinese industrial policy or the government subsidies".
For the week ahead, besides trade talks, we have a number of other key events for the US, including Fed governor Powell, speaking, the FOMC minutes and US consumer Price Index.
Gold levels
Technically, the price left a daily doji candlestick on the charts with the price closing above the 1500 psychological figure again which opens 1520 ahead of a 1535 resistance level. On the downside, the bears will traget to break below a 50% mean reversion of the late June swing lows to recent highs around 1460/70.
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