Gold targeting $1192 today China cut the RRRXAUUSD Technical Overview:
Pivot: 1202.10
Day Trading Range: 1186 - 1204
Key Resistance: 1200.20 - 1202.10 - 1205.45 - 1207.89
Key Support: 1196.28 - 1194.23 - 1191.56 - 1189.88
Technical Indicator:
RSI: RSI broke rising trend line and moving downward.
Moving Average: SMA 200(1195.55) strong support & SMA 100 (1200.45) strong resistance for Gold today.
Technical Trade View:
Most Likely Scenario: short positions below 1202.20 with targets at 1194.23 & 1189.88 in extension.
Alternative scenario: above 1202.20 look for further upside with 1206.89 & 1208.55 as targets.
Overall, Gold futures are under pressure early Monday in reaction to a stronger U.S. Dollar. The dollar is being underpinned by a move by the People’s Bank of China designed to prop up its economy. U.S. banks and the Treasury are closed so the focus will be on geopolitical events today rather than government reports and Treasury yields.Over the week-end, the European Commission told Italy it is concerned at its budget deficit plans for the next three years since they breach what the EU asked the country to do in July, but Rome insisted on Saturday it would “not retreat” from its spending plans.
This news is weighing on the Euro which is helping underpin the dollar, leading to renewed pressure on gold prices.
However, the major news helping the dollar and pushing gold lower is from China. On Sunday, the People’s Bank of China announced a steep cut in the level of cash that banks must hold as reserves, stepping up moves to lower financing costs and spur growth amid concerns over the economic drag from an escalating trade dispute with the United States.
The People's Bank of China (PBOC) said on Sunday that would cut the amount of cash that banks must hold as the reserve to lower financing costs and spur growth in the world's second-biggest economy. The 100 basis point cut in the reserve requirement ratio (RRR) will come into effect from Oct. 15 and will inject a net USD 109.2 billion in cash into the banking system.
Interest rate cuts usually put a bid under gold, however, the PBOC's decision to cut rates for the fourth time in 2018 isn't boding well for the safe-haven yellow metal.
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YoCryptoManic
