Next week, non-farmers with many major events to attack the gold bulls can be a snow this week's shame

September 29, 2019

New York (Sept 29)  There will be a lot on next week's agenda-more Trump impeachment farce, potential Iran dialogue, progress in trade negotiations between China and the United States, and, most importantly, U. S. data.

Gold suffered a strong sell-off on Friday as risk aversion pushed gold just below the $1500 mark. COMEX December gold futures closed down 0.6 per cent at $1506.40 an ounce, their lowest close since Sept. 19 and down 0.6 per cent this week.

Impeachment drama

The news of this week's impeachment in the United States has had a major impact on the market, and the House of Representatives is considering impeaching President Donald Trump.

Gold was boosted by a sell-off in the stock market after House Speaker Pelosi (Nancy Pelosi) issued an impeachment statement. But the stock market rebounded quickly after Trump denied exerting any exchange pressure on the Ukrainian president.

"once the market corrects expectations, gold prices will be hit hard," Phillip Streible, senior market strategist at RJO Futures, told Kitco News. "

Iran talks boost stock market

Later this week, Iranian President Rouhani (Hassan Rouhani) said the United States is willing to lift all sanctions against Iran in exchange for negotiations, another major factor affecting the market.

"what we want to discuss is which sanctions will be lifted, and they [the United States] have made it clear that they will be lifted," Rouhani said. "

Trump quickly denied Iran's statement on Twitter: "Iran wants me to lift sanctions against them in order to meet." Of course, I said, no! "

However, analysts said they would not be surprised if there were some negotiations in the future. "Iran says the United States is considering lifting sanctions, which Trump denies and there is likely to be a new dialogue." Streible said.

Where will gold go next week?

Bart Melek, head of global strategy at Dow Securities, said gold prices could consolidate further next week, but good support was at $1480.

Melek added that risk appetite had rebounded and the dollar had strengthened, depressing gold prices. "there is support around $1480. Gold should rebound from then on, "he noted, noting that the reasonable ceiling for gold is still $1535.

The key level not to fall below is $1490.70, Streible said. "this is the low point of September 18. If the closing price in September is negative, it could be the first loss in five months. "

Streible is neutral to slightly bearish on gold prices next week, but he doesn't think the rally will end in the long run.

"Gold fell, but not out. Gold may not be the most popular asset in a week or two. However, the stock market still looks weak and people are just buying risky assets at the moment. "

Data is critical

The Melek stressed that the Fed is still very dependent on the data today and that any disappointing economic news could push gold back above $1500 next week.

The main agenda for next week will be Tuesday's ISM manufacturing data and Friday's jobs report.

"the ISM manufacturing index is expected to be slightly above 50.3. As for the jobs report, we expect 140000 jobs in September, "Melek said." any disappointment in the economy will bring gold close to the $1500 mark, mainly because the Fed is watching the data and the economy is slowing. "


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