Gold Price Forecast: Bulls not interested

Valeria Bednarik FXStreet

XAU/USD Current price: $1,753.48

Upbeat US data lifted the market’s mood and weighed on the dollar.
US Treasury yields continue climbing to multi-month highs.
XAU/USD is marginally higher on a daily basis but bears retain control.

Spot gold is little changed from its Friday’s close, trading around $1,753.00 a troy ounce. Although steady, the market’s mood is positive, with global indexes trading mixed, but mostly up. A critical sign of the market’s times is US Treasury yields, which surge to fresh multi-month highs after the US Federal Reserve announced its preparing to trim pandemic-related facilities last week. The yield on the 10-year US Treasury note hit 1.51%, a level that was last seen in July amid mounting inflationary pressures and the Fed acknowledging it.

The American dollar advanced throughout the first half of the day but lost intraday momentum following the release of upbeat US data, which boosted sentiment instead of the local currency. US Durable Goods Orders were up 1.8% MoM in August, much better than the 0.7% expected. XAU/USD recovered from an intraday low of $1,744.84 as demand for the dollar receded.

Gold price short-term technical outlook

The daily chart for XAU/USD shows that it keeps trading below the 61.8% retracement of its March/June rally, a critical resistance level at 1,769.10. The bullish potential is limited, as the price is far below a bearish 20 SMA, which accelerated its decline below the longer ones. Technical indicators have recovered within negative levels, but the RSI remains flat at around 40, indicating absent buying interest.

Gold is bearish in the near term. The 4-hour chart for XAU/USD shows that a bearish 20 SMA provides intraday resistance, attracting selling interest. At the same time, the 100 SMA has crossed below the 200 SMA, both well above the current level. In the meantime, technical indicators have resumed their declines within negative levels, although with limited directional strength.

Support levels: 1,742.00 1,734.30 1,725.10

Resistance levels: 1.760.85 1,769.10 1,785.40

View Live Chart for the XAU/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold drops to daily lows below $4,150

Gold builds on Friday’s retracement and slips back below the $4,150 mark per troy ounce on Monday. The better tone in the US Dollar and a decent bounce in US Treasury yields across the curve keep the yellow metal under pressure for now.

Crypto Today: Bitcoin, Ethereum, XRP extend recovery despite ETFs outflows

Bitcoin edges higher above $82,000, building strong structural support despite roughly $229 million in ETF outflows last week. Ethereum recovers above $2,400 as bulls strive to regain trend control, backed by a subtle recovery in momentum indicators.

Higher than expected inflation shakes markets: What to prepare for?

US CPI report came in stronger than expected, lifting the probability of a December rate hike higher once again. Even though Fed Chair Warsh reinforced expectations of a hold for the October’s meeting, markets now face a two-step event: a likely pause on October 28, followed by an interest rate hike on December 9.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.