Downslope Gold Price Tests the Key Support 1480

Last week (September 23-27), spot gold price tumbled due to a surge of USD, falling nearly 20 dollars in a single week. Although US House of Representatives scheduled impeachment of President Trump temporarily boosted gold price during the week, other factors such as bullish US dollar and improving risk appetite of the market have weighed on it. Meanwhile, investors will also see the release of key indicators such as NFP in the week.

September‘s CCI (Consumer Confidence Index) in the US failed market expectation and dropped to 125.1, the lowest in nearly 3 months. The escalation of trade frictions and tariff disputes in August has worried US consumers, and pessimism towards the current situation also dampens short term outlook, as is confirmed by University of Michigan’s regular CCI survey.

Looking to the future, the market expects to see further slowdown of US economy. But better performance of the industrial sector and financial market may be expected if the trade tension eases, while gold price may continue to drop.

Technically, gold price has hit a key spot of 1480, which is about 23.6% on the line connecting the spot at early May, 2019 and the peak at the end of August. If falling gold price breaks this point, the next key support will be at 1450, or 38.2% of the line.

Key range for gold:1501--1511

S1: 1477 R1: 1525

S2: 1458 R2: 1554