Gold Intraday: Continuous Sideways

Spot gold remains trading with its recent range despite yesterday's pull-back, while increasing uncertainty over the U.S.-China relationship may spur safe-haven demand.

Gold 5

On Thursday, spot gold failed to maintain its recent rebound, ending 0.8% lower to $1,944. However, U.S. equity market was dragged lower by tech stocks, as Nasdaq 100 dropped 1.5%, wiping out the gains made earlier this week.


It is reported that the Trump administration has asked U.S. gaming company Riot Games and Epic Games, owned or partly owned by Chinese tech giant Tencent, to provide information about their data-security protocols involving Tencent.


The increasing uncertainty over the U.S.-China relationship may spur safe-haven demand.  During Asian trading hours today, spot gold rebounded 0.4%.


On the 1-hour chart, spot gold remains trading with its recent range despite yesterday's pull-back. In fact, it has rebounded after reaching the 38.2% Fibonacci retracement support of the rally started from September 8. The level at $1,933 may be considered as the nearest support level, while the 1st and 2nd resistance are expected to be located at $1,974 and $1,992 respectively. Alternatively, losing $1,933 would suggest that the next support at $1,922 may be exposed.



Source: Gain Capital, TradingView

More from Gold

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.