All the Covid-19, U.S. election or economic data have had diverse impacts on the market lately, vaccine progress pulling gold south, election debate pushing it north etc. causing a high-volatility week for the metal. Not long after maintaining above 1900 level this week, as soon as stimulus talk gets back on the table, gold price dived down to lowest seen in October at 1872. Unemployment claims published last evening shown a worse-than-expected figure pushing it up again, continue its trend until the time of writing at 1905.

On the technical side, death-cross appeared on the H1 chart where SMA50 downward-crossed SMA200. This should indicate a strong bearish movement yet, fundamental has rejected the movement with 840k unemployment claims versus 820k as analysts expected. Technical alleged down, fundamental speaks up. Asian opened a dollar higher, expect to continue extending its gain upto first resistance 1908.60 and might see retrace back down to 1901 to test if that level could act as a support.

If 1901/1903 acts as support, opportunity to buy those levels with first target at 1908 and second target 1917, with tight stop-loss at 1895.

Analysed by:Mr. Ronald Wu,Independent Analyst