Bottom in place: Gold jumped to 10-day high

Gold (XAU/USD) jumped to 10-day high yesterday, adding credence to long-tailed candles.
Eyes gradually ascending (bullish) 100-day moving average (MA) hurdle.

Omkar Godbole FXStreet Contributor

Having created back-to-back long-tailed doji candles at the 200-day moving average support, gold shot up to a ten-day high of $1,323 - the highest level since April 30.

The yellow metal picked up a bid yesterday as the dollar index (DXY), which tracks the value of the greenback against major currencies, fell from 92.97 to 92.40 after the US April consumer price index (CPI) missed estimates.

The price action indicates the sell-off from the April 11 high of $1,365 has made a temporary low of $1,300 (May 1 low) and the bulls have regained control.

Further, the DXY daily chart shows bearish doji reversal, so the yellow metal may extend gains further to the gradually ascending (100-day MA) of $1,327.

Gold Technical Levels

As of writing, the metal is changing hands at $1,320/Oz. Resistance is lined up at $1,327 (100-day MA), $1328.50 (50-day MA) and support is seen at $1,317 (5-day MA) and $1,314 (10-day MA).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Strongly Bearish	Neutral	High
1H	Bearish	Neutral	Low
4H	Bullish	Overbought	Expanding
1D	Bullish	Neutral	Low
1W	Bullish	Neutral	Low
Updated May 11, 02:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD holds lower ground near 1.3450 on USD rebound

GBP/USD trades in negative territory around 1.3450 in the European trading hours on Friday. Heightened Middle East tensions and rising global oil prices provide some support for the safe-haven US Dollar (USD), weighing on the pair. The US Michigan Consumer Sentiment Index will be published later on Friday.

EUR/USD holds above 1.1500 after EU inflation data

EUR/USD holds steady above 1.1500 on Friday following a two-day rally that saw the pair gain more than 1%. While the risk-averse market atmosphere supports the US Dollar and caps the pair's upside, the stronger-than-expected HICP inflation figures from the Eurozone helps it keep its footing.

Gold sticks to losses as Iran risks revive USD demand

Gold meets with a fresh supply on Friday as the US Dollar rebounds from a one-and-a-half-month trough. Escalating US-Iran tensions keep inflation risks and Fed rate hike bets in play, supporting the USD. The technical setup seems tilted in favor of bearish traders and backs the case for further losses.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Indian Rupee hits fresh two-week high against US Dollar

The Indian Rupee extends the week-long rally against the US Dollar on Friday. The USD/INR pair slides to a fresh over two-week low near 95.30 due to the overnight slump in the US Dollar amid growing doubts regarding whether the Federal Reserve is seriously committed to bringing the United States inflation down.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.