- Gold is now 1.11% lower on the session as a wave of selling pressure kicks in.
- US President Trump announces on Twitter he will not be taking the latest fiscal deal.
Fundamental backdrop
Donald Trump has taken to Twitter to confirm he will not be looking to accept the latest negotiated deal between the Democrats and Republicans regarding fiscal stimulus. The Democrats wanted a deal worth USD 2.4 trillion but Trump said:
Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.
Gold 1-hour chart
The gold price had been moving lower leading into the release but this was just a catalyst for more damage. Now the precious metal has broken below USD 1900 per troy ounce and hit a low of USD 1889.40 per ounce.
The current support at the red line on the chart is holding off the bears for now but if the level breaks the next is at USD 1875 per ounce (green line). Beyond that, the next level of defence is at the wave low near USD 1850 per ounce.
Interestingly the Relative Strength Index had been showing a divergence signal before the new struck. This is when the price makes a higher high but indicator makes a lower higher. In this case it worked nicely and the price has move lower.
-637376082231699396.png)
Additional levels
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
EUR/USD resumes decline, hovers around 1.0700
Fed Chair Powell temporarily boosted optimism pushing EUR/USD to 1.0766 amid Powell saying that stronger-than-expected data will see the Fed raising rates accordingly. High-yielding assets gave up as Powell said another strong labor report would result in a higher terminal rate.
GBP/USD trades around 1.2000 in Powell’s aftermath
GBP/USD flirted with 1.2100 within FOMC Chairman Jerome Powell's speech, but quickly trimmed gains and hovers around the 1.2000 figure. The US Federal Reserve further cooled expectations of a rate cut by year-end.
Gold: Holding above $1,860, but upside still seen limited Premium
Spot gold saw little action throughout the first half of the day, consolidating its latest losses just above the $1,860.00 threshold. The US Dollar mainly advanced against its European rivals, as certain caution reigned ahead of a speech from US Federal Reserve (Fed) Chairman Jerome Powell, resulting in XAU/USD holding within familiar levels.
Google battles ChatGPT with Bard: Will this trigger rally in AI tokens?
Google is getting its ChatGPT competitor ready for action, the company said that its AI service Bard would be open to trusted testers and the service is being prepared for release within the following weeks.
Canoo Stock Forecast: Monday's GOEV plunge meets Tuesday buyers
Canoo (GOEV) stock is trading up more than 3% in Tuesday's premarket after a surprise share offering on Monday helped the EV small-cap to close 12.4% lower. This seemed like a major overreaction from the market, which should have seen this coming.