Gold Tests Key Resistance After First Presidential Debate

WikiFX News (30 Sept) - Markets suspended in uncertainty ahead of the first U.S. 2020 presidential debate, which was held on September 29 local time. In addition, gold is testing the key resistance at $1,899.77 amid the ongoing fiscal stimulus talks between Republicans and Democrats.

The debate between Biden and Trump was staging from 9:00-10:30 p.m. local time. While typically debates do not have an overwhelming impact on voter intentions, the controversial nature of this election amid volatile times could influence the polls. The recent news about Trump paying less in taxes may hurt his chances of re-election.

Moreover, U.S. fiscal stimulus talks between Republicans and Democrats are still ongoing. Signs of coordination may buttress risk appetite and push equity markets higher, sending a rise to gold at the expense of the greenback. Conversely, bipartisan intransigence may see this dynamic reverse.

Gold prices are testing the resistance of 1899.77, where a breach above could open the door for further gains, with future key-resistance levels lying at $1969.16, $2,001.93 and $2,069.77, respectively.

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Chart: Gold Trend