Investment bank: Financial markets seem to be fragile Gold investors need to pay attention to this price

24K99 (North America), a market analyst said that on Wednesday (October 2), with the risk-ahead demand pushing gold prices above $1,500/oz, the positive investment sentiment and the fragility of financial market stability were fully reflected. .
Ole Hansen, head of commodities strategy at Saxo Bank, reiterated his short-term forecast that the gold market has experienced a moderate correction in a strong uptrend. In a report on Wednesday, he pointed out that the gold market has shown resilience after falling 2% on Monday.
The December gold futures were finally reported at $1,504.80 per ounce, up 1% on the day. At the same time, the US stock market fell more than 1%.
“COMEX futures prices ‘only’ fell to $460, and did not trigger a series of sell-off orders for speculators holding record long positions, but found support,” he said in the report. “As we highlighted in the latest weekly commodity update, the market looked a bit tired late last weekend and needed a down test to measure its strength.”
Hansen added that only a bad US economic report can prompt investors to flee the stock market and look for safe-haven assets such as gold.
“The US ISM manufacturing index unexpectedly weakened in September, far below the 50 mark, which reminds the market why the price of gold has risen so fast in the past few months, why it is likely to continue to rise in the coming months,” he said. .
The American Institute of Supply Management said on Tuesday that US manufacturing confidence contracted further last month, much lower than economists expected.
Hansen also said that the latest economic report, combined with data from around the world, allows investors to refocus on the possible slowdown in the global economy.
He said: "People are worried that the US-China trade talks to be resumed later this month will not break through, which makes the economic slowdown even worse."
Hansen also said that he will pay close attention to the service industry report that ISM will release on Thursday. He explained that the report had the greatest impact on growth expectations for the third quarter.
He said that considering the price of gold, the support that investors need to pay attention to is $1,485.
“The first key support at $1,450 was not challenged,” he said. “The price of gold has quickly risen above $1,485. It may now attract investors who have been waiting for a bigger callback to buy more gold.”