Gold prices moved higher on Friday (10/9), supported by a weaker US dollar and optimism over a coronavirus relief package in the US after President Donald Trump said talks with Congress had resumed.

Spot gold prices at 9:32 WIB were seen strengthening 0.7% at $1907.06. Meanwhile, the US dollar index is on track for a second straight weekly decline. In an interview, Trump said there was a good chance a Covid-19 relief deal could be reached, but he did not provide further details on the likelihood of an agreement.

Meanwhile, US House Speaker Nancy Pelosi said that legislation to help airlines survive the impact of the pandemic could only be done through Congress with assurances that a comprehensive bill would also be developed.

Gold prices tend to benefit from stimulus measures because they are seen as a hedge against inflation and currency weakness.

Market review and economic data to be released today are :

  1. Gold prices have the potential to strengthen in the short term amid the outlook for a weakening US dollar after last night's pessimistic US employment data was released, as well as the re-emergence of market hopes for further stimulus in the US after President Trump pushed for the approval of a stimulus bill that is larger than targeted to dampen the economic downturn caused by the corona virus.
  2. Oil prices have the potential to move up in the short term amid the outlook for supply disruptions due to the threat of Hurricane Delta in the Gulf of Mexico and the widespread strike by oil workers in Norway. Another sentiment that could trigger an increase is the optimistic statement from OPEC Secretary General Mohammad Barkindo who said that the worst conditions in the oil market are over. Today's market focus will be on US rig activity data reported by Baker Hughes at 24:00 WIB.
  3. EURUSD has the potential to strengthen in the short term if the dominant sentiment is the weakening of the US dollar. However, the market must be aware of the increase in Covid-19 cases in several European countries and the slowdown in the German economy as well as the outlook for further monetary easing from the European Central Bank as reported in the minutes of their meeting. Today's focus is on French and Italian industrial production data released at 13:45 WIB and 15:00 WIB.
  4. GBPUSD also has the potential to strengthen in the short term as hopes for progress in Brexit negotiations and the outlook for a weakening US dollar re-emerge. Today's focus will be on a number of UK economic data reported at 13:00 WIB such as GDP, Goods Trade Balance and Manufacturing Production.

Daily Pick

Today's prediction is that the EUR pair (EUR USD) is expected to continue its increase, and the recommended OP is BUY at level 1.17800 with a profit target of 10 - 20 points and a stop loss of 5-10 points.

  • Buy 1,17800
  • TP 1 = 1.1790 (10 point)
  • TP 2 = 1.1800 (20 point)
  • SL 1 = 1.1775 (5 point)
  • SL 2 = 1.1770 (10 point)

Always prioritize Money Management and Risk Management.

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