XAU/USD Current price:  $1,794.19

  • US Treasury yields are sharply down, taking their toll on the greenback.
  • FOMC Meeting Minutes and hawkish US officials paving the way to taper.
  • XAU/USD broke above a critical Fibonacci resistance, eyes 1,808.63.

Gold runs on the back of a broadly weaker dollar, the latter hurt by falling US government bond yields. The release of US inflation figures, upwardly revised to 5.4% YoY in September, was the latest catalyst ahead of the release of the FOMC Meeting Minutes. XAU/USD trades at around $1,794 a troy ounce, its highest in almost a month, as the latest US CPI figures back policymakers determination to kick-start tapering before the year-end.

The dollar remains on the back foot ahead of the FOMC Meeting Minutes. Fed officials maintained alive the tapering talk these days, despite a dismal employment report. Back in September, Chief Jerome Powell and Co  delivered a hawkish message, anticipating that tapering “may soon be warranted.” The document is expected to be hawkish, although worth noting that it was produced before the latest dismal Nonfarm Payrolls report.

Meanwhile, US stocks trade mixed. European indexes closed mostly up, although with limited gains. The yield on the 10-year US Treasury note stands at around 1.55% after bottoming at 1.52%.

Gold price short-term technical outlook

XAU/USD trades above the 61.8% retracement of its latest daily decline at 1,777.75, the immediate support level. The daily chart shows that the metal tested on the downside a flat 20 SMA, while the rally stalled at around a bearish 200 SMA. In the same chart, technical indicators have turned sharply higher, reflecting the ongoing momentum.

In the near term and according to the 4-hour chart, gold is poised to extend its advance. The price has run beyond all of its moving averages, while technical indicators maintain their upward slopes despite being in overbought territory. The next relevant resistance level and a possible bullish target is 1,808.63, the high from September 14.

Support levels: 1,777.75 1,764.35 1,748.05  

Resistance levels: 1,796.17 1,808.63 1,820.02

View Live Chart for the XAU/USD

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD: Bears stepping in below 1.1600, focus on ECB, US GDP

EUR/USD remains under pressure below 1.1600, as the US dollar extends the late Wednesday bids amid broad risk-aversion. Traders turn cautious amid stagflation fears and ahead of Thursday's ECB policy decision and the US Q3 GDP release. 


GBP/USD: Sellers attack 50-DMA on monthly support break

GBP/USD prints a three-day downtrend following the key support break, pressured around 1.3740 during the early Asian session on Thursday. The cable pair broke an ascending support line, now resistance, from September 30 the previous day but refrained from closing below 50-DMA.


Gold remains pressured near $1,800 amid USD recovery

Gold prices surrender the previous session's gains and struggle to defend the $1,800 mark. The US 10-year Treasury yields rebound from the early lower levels to trade at 1.55%, following the upcoming BOJ and the ECB policy meetings on the day.

Gold News

MATIC outperforms Bitcoin and Ethereum, Polygon targets $3 and new all-time highs

MATIC price action has been in a bullish tear, trading to the inverse of nearly every other cryptocurrency. Consequently, it was positioned perfectly for a rally and is now on track to create a new all-time highest weekly close. A new all-time highest weekly close is on the horizon.

Read more

BOJ Preview: Focus on outlook tweaks ahead of general election Premium

Despite the recent depreciation in the yen and rising energy prices, the Bank of Japan (BOJ) is likely to maintain its monetary policy settings on Thursday, as it concludes its two-day monetary policy review meeting.

Read more