Counterattack opportunity revealed! Geopolitical risks join hands in US Election Debate. Dollar gold under pressure gets multiple supports!

Gold rebounded from its lows on Tuesday, hitting an intraday high of $1,892.80 an ounce, as geopolitical risks lent momentum to the gold rally while the epidemic situation remained severe, allowing the impact of the bullish factors to begin to mount. Meanwhile, the dollar fell ahead of the first us presidential debate, setting the stage for a counter-attack by gold bulls.

Remarks by Fed officials added to downward pressure on the dollar. New York Fed President William J. Williams, Philadelphia Fed President Richard Harker and Dallas Fed President Richard Kaplan all expressed their views on remaining accommodative and taking further steps to help sustain the recovery.

While polls show Mr Biden polls still clear lead, the current market pricing biden won, but today’s comments may trump “turn things around”, and opinion polls in 2016 under the antecedents of annihilation, campaign and high uncertainty of the actual election results, investors remain cautious, dollar makes dollar-denominated gold assets get a boost.

On the other hand, markets continue to focus on the new us fiscal stimulus bill. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi will discuss epidemic assistance measures on Tuesday, according to U.S. National Economic Adviser Tom Kudlow. The House of Representatives is expected to vote on the stimulus bill this week or reach an agreement within the week, according to House aides. Further fiscal stimulus is expected to boost the inflation outlook, providing a further boost to gold assets with a value against inflation.

In terms of geopolitical risks, the fourth biennial exercise of the Indian and Japanese navies, jimet-20, took place in the north Arabian sea on 26 solstice28 September. This is the first exercise since the conclusion of the mutual logistic support agreement earlier this month. India, Japan, Australia and the United States have been coordinating joint action in the “free, open, prosperous and inclusive” Indo-Pacific region based on Shared values and principles and respect for international law. The combination is seen as a response to China’s growing military assertiveness in the Indo-Pacific region.

In addition, serious conflict has resumed between Azerbaijan and Armenia in the Nagorno-Karabakh region. President Aliyev of Azerbaijan has signed an order declaring a state of war in Azerbaijan starting from 0:00 on 28 September 2020. That has helped boost gold prices.

Technique, the gold price as a whole is still in the early technology break after a downward trend, the wave of movements since 1849 dollars is a trader’s super fell rebound, only gold prices have recovered $1900 in above 10 – day moving average, to mark the callback has come to an end, otherwise, there are still down further pressure on the gold.

Ole Hansen, head of commodity strategy at Saxo Bank, said that while gold had fallen below 1900, it had held up some key levels. However, Hansen said further falls in gold prices could not be ruled out, especially if the dollar remains strong.

Aftermarket Outlook:

“We like gold because we think it could actually hit around $2,000 an ounce by the end of the year,” Kelvin Tay, regional chief investment officer at UBS Global Wealth Management, told CNBC.

UBS Global Wealth Management told CNBC that investors should put their money into gold now because it is a “very good hedge” ahead of risk events such as the US presidential election, the report said.

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