Gold Intraday: Under Pressure as Stimulus Hopes Faded

Gold nuggets

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.

Market chart of XAU/Gold vs USD. Analysed in 2020

Source: Gain Capital, TradingView

Related tags: Gold Commodities Trump

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