Gold Intraday Under Pressure as Stimulus Hopes Faded
FOREX.com October 6, 2020 11:37 PM
Spot gold is under pressure after U.S. President Donald Trump's announcement to stop stimulus package discussions...
U.S. President Donald Trump announced that he is terminating the discussions with Democratic leaders regarding a new stimulus plan, until after the presidential election. Spot gold slid to a day-low near $1,973 after his announcement as stimulus hopes faded.
From a technical point of view, spot gold has resumed its recent downtrend as shown on the 4-hour chart. In fact, it has retreated after approaching a bearish trend line drawn from August's high. It has now broken below both the 20-period and 50-period moving averages, signaling a bearish bias. The level at $1,919 may be considered as the nearest resistance, while a break below the nearest support at $1,848 would open a path to the next support at $1,830.
Source: Gain Capital, TradingView
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