XAU/USD outlook: Gold eases after failing to hold gains above $1800
|XAU/USD
Spot Gold eases after repeated failure to sustain gains above psychological $1800 barrier, with rising expectations that the US Federal Reserve could finally announce the start of reducing stimulus in its Nov 3 policy meeting and market participants operating with information about higher probability of rate hikes in 2022.
Reduced stimulus and higher interest rates are usually negative factors for the yellow metal, with short-term outlook also turning negative on ongoing risk-on environment.
Technical studies are weakening on daily chart, as the price returned below 200-day moving average and stochastic heading south after diverged from rising price earlier.
Pivotal supports lay at $1781 (top of thinning daily Ichimoku cloud) and $1778 (Fibonacci 38.2% retracement of $1721/$1813 bull-leg), break of which would generate reversal signal and open way for extension towards next strong supports at $1760/56 (Oct 18 higher low / Fibonacci 61.8% retracement of $1721/$1813) and a higher base at $1750 zone.
Repeated weekly close below $1800 would add to negative signals, but the metal is on track for positive monthly performance after 3% drop in September.
Res: 1793; 1800; 1813; 1834.
Sup: 1781; 1778; 1767; 1760.
Interested in Gold technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.