XAUUSD: Rebounds to $1,950 on United States credit rate cut

Gold Price (XAU/USD) begins Wednesday’s Asian session on a front foot, bouncing off the lowest levels in a week, as well as from the 200-SMA key support, as it justifies the United States government’s rate cut by the rating giant Fitch Ratings. In doing so, the yellow metal pares the previous day’s heavy losses with mild gains to around $1,950. However, the bears remain hopeful ahead of today’s United States Automatic Data Processing (ADP) Change Employment, the early signal for Friday’s Nonfarm Payrolls (NFP).

On Tuesday, US ISM Manufacturing PMI for July improves to 46.4 from 46.0 prior, versus 46.8 expected. Further details unveil that ISM Manufacturing Employment Index slumped to 44.4 from 48.0 expected and 48.1 prior whereas the ISM Manufacturing Price Paid for the said month rose to 42.6 from 41.8, compared to 42.8 market forecasts. Elsewhere, the US JOLT Job Openings for June also eased to 9.582M compared to 9.62M expected and 9.616M previous readings (revised).

XAUUSD BUY LIMIT 1945 - 1943

TP1: 1950
TP2: 1955

SL: 1940

Comment:

China, India news weigh on XAU/USD

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RUNNING . +40PIPS

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China's Caixin manufacturing PMI fell to 49.2 in July, the lowest level since January, which weighed on gold prices making China a huge gold consuming market.

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Markets are also closely watching the upcoming US ISM export PMI products for July and JOLTS vacancies for June, which could impact gold prices.

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Gold price is still in a correction phase after creating a double top pattern at the 1972 price range to the maximum, now the price is trading in 1957, the structure is still falling and there is no sign of turning up again.