There was less risk aversion in the marketplace Monday, following markets being roiled last Friday by reports the U.S. was considering limiting U.S. investors’ investment in China, including the U.S. stock exchanges de-listing Chinese companies. Weekend reports, including a statement from the U.S. Treasury Department, then said the Trump administration is not considering such moves.
Asian stock markets saw some selling pressure after the 17th weekend in a row of demonstrations in Hong Kong. This past weekend is being called the worst, with many arrests after protestors bombarded police with everything from bricks to firebombs.
China’s economy got some slightly upbeat news Monday, as the official manufacturing purchasing managers index rose to 49.8 in September from 49.5 in August. It was the fifth month in a row with a reading below 50.0, which suggests a contraction in the sector. The September PMI report did come in slightly above market expectations.
Technically, the gold bulls have the slight overall near-term technical advantage but are fading fast. A four-month-old uptrend on the daily bar chart has been negated. A downtrend line is now in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October above solid resistance at $1,525.00. Bears' next near-term downside price breakout objective is pushing December prices below solid technical support at $1,450.00. First resistance is seen at $1,490.00 and then at $1,500.00. First support is seen at today’s low of $1,472.20 and then at $1,467.00.