Gold is still moving in the green zone for a second straight day above the key $1,900/troyounce level. "Gold is up around the $1,900 level and looks ready to consolidate until the US presidential election is over," said Ed Moya, analyst at OANDA in New York.

US gold for December delivery settled at $1,908.90 an ounce on the Comex in New York, up $1.60, or 0.1%, with the potential to rise further to $1915. The driving force of GOLD's movement was the frenzy of confusion over what the Trump administration wants for a new Covid-19 relief deal.

After US Treasury Secretary Steven Mnuchin unwittingly triggered a financial market explosion Tuesday by casting doubt on a deal on coronavirus stimulus in the near future between him and Nancy Pelosi, more talk emerged from the White House and Senate on Thursday.

Mnuchin gave a call to CNBC on Thursday, reiterating that he was open to a modest, “targeted” deal with Pelosi, suggesting she shift about $300 billion of the money previously earmarked for needy Americans.

The House speaker, arguing that President Donald Trump is seeking a symbolic victory ahead of the Nov. 3 election rather than actually helping the struggling poor, has refused to do anything halfway by sticking to his proposed $2.2 trillion package.

Trump, who faces Democrat Joe Biden in the Nov. 3 election, repeated his $1.8 trillion offer in an interview on Fox Business. But Senate Majority Leader and top Trump ally Mitch McConnell later told reporters that he could only get the votes for a $500 billion bill, and that too after the election.

Despite the back and forth, gold prices rose. While modest, it was a remarkable performance by the yellow metal, considering the dollar was also stronger.

"Fiscal stimulus before November 3 seems unlikely and if the election produces a blue wave, Biden's infrastructure spending plan would be very negative for the US dollar and in turn positive for gold," Moya said, referring to the Democratic party's blue color.

The following is the economic data that will be released on Friday, October 16, 2020:

  1. Tonight at 19:30 WIB, Statistics Canada will release Canadian retail sales data for September. If the sales data is lower than expected, it could weaken the Canadian dollar and USDCAD could potentially rise.
  2. At the same time, the US will also release its retail sales data for September. If this data is released lower than expected, gold prices have the potential to strengthen.
  3. 45 minutes later, gold prices have the potential to continue rising if US industrial production data is released lower than expected.
  4. At 21:00 WIB, gold prices have the potential to continue rising if the University of Michigan's consumer sentiment survey data on the US economy is released lower than expected.

Daily Pick

Today's prediction is on the UJ pair (USDJPY) which is expected to decline and the recommended OP is SELL at level 105,200 with a profit target of 10 - 20 points and a stop loss of 5-10 points.

  • SELL at level 105,200
  • TP 1 = 105.100 (10 point)
  • TP 2 = 105,000 (20 point)
  • SL 1 = 105,250 (5 point)
  • SL 2 = 105,300 (10 point)

Always prioritize Money Management and Risk Management.

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