Gold Price Falls Below $1,190

8 October, GKFX – Although risk-aversion seems to be the main market-theme on Monday, the XAUUSD pair remains under pressure amid broad-based USD strength.

Gold Price Slumps Below $1,190

As of writing, the pair is trading at its lowest level in a week at $1186, losing $16, or 1.35%, on a daily basis.

The lack of progress in the U.S. – China trade talks and ongoing concerns over the escalating tension between Italy and the EU seem to be weighing on the market sentiment in the first trading day of the week. Major European equity indices are suffering heavy losses to reflect the risk-off mood with Germany’s DAX and the UK’s FTSE indexes losing 0.9%, and 0.67% respectively.

However, the weakening demand for European currencies helped the USD gather strength and didn’t allow gold to take advantage of the risk perception.

The US Dollar Index, which advanced to a session high at 96 in the last hour, was last seen at 95.95, where it was up 0.3% on a daily basis. With American traders enjoying the Columbus Day holiday on Monday, the trading volume is likely to thin out in the upcoming hours.

Technical Levels to Consider

With today’s sharp fall, the RSI indicator on the daily chart turned south below the 30 mark, and the CCI indicator on the same chart broke below the 0 mark, both suggesting that the bearish momentum is gathering strength.

On the downside, the pair could encounter the first technical support at $1184 (Oct. 1 low) ahead of $1180 (Sep. 28 low) and $1173 (Aug. 15 low). Resistances, on the other hand, could be seen at $1195 (50-DMA), $1200 (psychological level) and $1208 (Oct. 2 high).


This article was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

Share Your Opinion, Write a Comment