Gold Trend 10/02 - Tariff news dominates the market

Triggered by Trump's 25% tariffs on Canada and Mexico, Gold tested new highs last week. Although the tariffs were delayed for a month just hours after they were deployed, the news sent shockwaves to the market, pushing gold prices above last week's highs early in the U.S. session on Monday. The upward momentum accelerated with the upward support accelerated from line (1) to (1.1), which rose to 2880 on Wednesday's session. The market turned quiet as it waited for Friday's US employment data, and the rally slowed slightly to (1.2). Although the Jan. non-farm jobs were smaller than expected, Friday's U.S. data wasn't bad at all, with the December figure being revised up to 300,000 and the latest unemployment rate revised down to 4.0% from 4.1% in the previous month. The pressure was on gold before the weekend.

The gold price continues to trade around its all-time high, hovering near 2880 with no signs of retreating. It is still imperative to keep an eye on the latest tariff policy developments in the United States and the responses of various countries. Fed Chairman Jerome Powell will have a hearing on Tuesday, and the US will release inflation data for January on Wednesday.

1-hour chart(above) > Although the upward trend slowed from (1.1) to (1.2) just before the weekend, there was no reversal signal in the 1-hour chart, and the price continued to stick to the all-time high of 2880. See if the price can break out from the resistance at 2880(3) in the next 12 hours, and if it fails to break up, the price will be sideway between 2833-86 early this week.



Daily Chart(above) > Gold prices temporarily showed S-T resistance at 2880, but the turnaround signal is still nowhere to be seen. An S-T long-entering point can be set at the 10-day moving average (4).

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