Gold bulls committing at the 200-HMA on critical week ahead

The price of Gold has been on the backfoot since failing to retake the $1,520 key upside level. Instead, Gold has tumbled all the way back below the $1,500 round level and the 200-hour moving average located at $1,493.

A strong equity market on Monday weighed on gold prices and the optimism about the completion of the first phase of the trade deal weighed on the yellow metal.  Subsequently, Gold for December delivery on Comex lost $9.50, or 0.6%, to settle at $1,495.80 an ounce, with prices ending below $1,500 for the first time since Wednesday. While global equities cheer the partial progress made on the trade talks between the US and China, there are also prospects that the Federal Reserve will cut in the upcoming meeting, which should limit the downside for bullion until an outcome of when Xi and Trump meet in Chile next month. 

US data in focus for the week ahead

Indeed, the progress in the US-China trade talks and the reduced risk of a hard Brexit are buoying sentiment against the backdrop of low inflation and monetary easing. Meanwhile,  it will be a busy week for data and the advance release of US Q3 Gross Domestic Production will be one to watch – It is forecast to have risen 1.6% saar, down from 2.0% in Q2 and confirming a deceleration in domestic demand, thus it could be a weight on the US dollar and gold supportive.  Then, Chinese Manufacturing and US Nonfarm Payrolls are also on tap with the potential to really rick the apple cart, one way or another. 

"We expect payrolls to register a subdued 70k print for October, largely reflecting GM's strike and its spillovers on suppliers' payrolls. The unemployment rate should tick up to 3.6%, while wage growth likely climbed a tenth to 3.0% YoY," analysts at TD Securities argued. 

Gold levels