Gold investment: the market mood suddenly changed! Gold short – term plunge 1890! Related to the trump statement?

On Wednesday (September 30) in the Asian session, the DOLLAR rose close to the 94 mark, while spot gold continued to drop to lose $1890, silver extended losses to more than 1%.

Gold rose to its highest in nearly a week yesterday as the dollar weakened and hopes for additional US fiscal stimulus increased ahead of the first presidential debate.

The highly anticipated first presidential debate of 2020 has ended. President Trump and The Democratic presidential nominee, Joe Biden, clashed on Tuesday night in a debate marked by personal attacks and interruptions that will have turned into a messy electoral contest.

Frequent interjections and put-downs largely obscure substantive discussions as the two men try to keep each other balanced.

Both Mr Trump and Mr Biden attacked each other’s intelligence. Mr Biden dismissed Mr Trump as a “liar” and a “clown”, declaring him “the worst President in the history of the United States”.

Trump has questioned Biden’s mental state for months, attacking the former vice President’s intelligence after Biden said more people would have died from the coronavirus pandemic if Trump hadn’t been “much smarter.”

Trump has repeatedly referred to Biden’s son, Hunter biden, accusing him of profiting from his father’s position as vice President and claiming Biden was “dishonorably” discharged from the US military for smoking cocaine.

In particular, President Trump has said that he will not “agree” to recognize the election results if he believes they were “rigged” and continues to make statements about voters voting by mail.

After the debate, risk sentiment cooled significantly, U.S. stock futures pared gains, the DOLLAR briefly pushed up close to the 94 mark, spot gold continued to fall back below 1890.

Analysts at ForexLive said the debate ended with the candidates agreeing to accept the election results, with Trump once again wavering on accepting defeat. You’ll remember that about a week ago, he refused to commit to failure. But just yesterday, he said “of course” there would be a peaceful transition. Trump is capricious. We’ve seen him so many times. The wobble at the end of the debate dampened the mood for day-risk. It seems telling his “proud kids” to be “ready” doesn’t help either.

As for the outlook for gold, TD Securities also said the dollar’s stumbling block could signal the end of gold’s consolidation. With negative real interest rates, it said, investors would still seek safety, so gold’s bull market remained intact.

A recent report from Scotia Bank argues that gold’s recent weakness is due to market sentiment rather than reality, and that short-term gold price movements don’t matter. “The recent selling pressure in the gold market reflects the perception of reality rather than the risk from the currency market, which is driving the dollar higher.”

Technical analysis:

The dollar

On the daily chart, the DOLLAR index hovered near its lows after two straight days of losses, watching to see if it could return to the 94 level. Daily chart MACD red kinetic energy column gradually weakened, KDJ random indicator from the overbought level down, indicating a slowdown in short-term bullish momentum, or further volatility downward.

Figure 4 hours, the dollar index reached a peak of 94.75 in the persistent downward, yesterday lost 94 mark, pay attention to during the period of 60 line support. The MACD green momentum column continued to weaken, with the KDJ random index trading within oversold levels, indicating dollar bearish momentum is weakening and a short-term attempt to stabilize.

gold

On the daily chart, gold has lost ground to the 1890 level after two days of gains. The daily MACD green momentum column weakened slightly, while the KDJ random index held steady above oversold levels, indicating a slowdown in bearish momentum for gold or further volatility.

On the 4-hour chart, gold’s recent rally faces resistance from its 50-period moving average, with an eye on whether it can break through the 1900 level. The MACD red momentum column starts to weaken and the KDJ random index tries to move down from the overbought level, indicating that the bullish momentum for gold starts to weaken and the short term may be under pressure.

silver

On the daily chart, silver rose 2 days after the fall from the high, the day fell to 24 dollars threshold. The daily MACD green momentum column gradually weakened, with the KDJ random index trading above oversold levels, indicating less bearish momentum for silver and further price volatility.

The 4-hour chart shows silver rising after hitting a low of $21.65 and now faces resistance from its 50-date average. The MACD red momentum column has started to contract and the KDJ stochastic has fallen from the overbought level, indicating that silver bullish momentum is starting to slow and may move lower in the short term.

Fundamentals positive factors:

1.Nancy Pelosi, THE Speaker of the HOUSE of Representatives, and Steven Mnuchin, the Treasury secretary, held talks on Tuesday on a new $2.2tn bail-out plan proposed by Democrats. After speaking with Mnuchin, Pelosi said she hoped to reach a deal with the White House this week on the CoVID-19 aid package.

2.Nancy Pelosi, the Speaker of the US House of Representatives, said President Trump’s reported debt troubles raised national security issues and the public should have a right to know who he owes money to.

  1. On Sunday, House Speaker Nancy Pelosi said that as negotiations continue, she believes an agreement can be reached with the White House on a new coronave-aid package.

Fundamentals negative factors:

  1. U.S. consumer confidence rebounded in September at its fastest pace in 17 years as sentiment about the labor market improved.
  2. Wall Street closed sharply higher on Monday as investors sought bargains in sectors hardest hit by the coVID-19 recession.
  3. Profits at China’s largest industrial companies rose for the fourth straight month in August, the National Bureau of Statistics said Sunday. The news sent stocks higher, limiting gold’s gains.

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