• 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.

Gold Analysis

Additional levels

XAU/USD

Overview
Today last price 1897.5
Today Daily Change -15.92
Today Daily Change % -0.83
Today daily open 1913.42
 
Trends
Daily SMA20 1916.56
Daily SMA50 1945.54
Daily SMA100 1854.2
Daily SMA200 1734.81
 
Levels
Previous Daily High 1918.82
Previous Daily Low 1887.06
Previous Weekly High 1917.16
Previous Weekly Low 1848.82
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1900.33
Daily Fibonacci 61.8% 1906.76
Daily Pivot Point S1 1885.78
Daily Pivot Point S2 1874.24
Daily Pivot Point S3 1858.55
Daily Pivot Point R1 1913.01
Daily Pivot Point R2 1928.7
Daily Pivot Point R3 1940.24

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures