Gold: 100-day EMA is proving a tough nut to crack for third straight day
- The repeated failure to move past the 100-day exponential moving average (EMA) is a slight cause for concern for the bulls.
- The dollar index (DXY) remains on the defensive and could suffer a deeper sell-off, lifting gold above the key EMA hurdle if the 10-year treasury yield suffers a double top breakdown.
Gold is currently trading at $1,221 per Oz, having faced rejection at the 100-day EMA hurdle of $1,225.
Notably, the EMA hurdle has capped gains since Friday despite the weakness in the US dollar – gold's biggest nemesis. At press time, the dollar index (DXY), which tracks the value of the greenback against the basket of major currencies, is flatlined at 96.22, having lost close to 100 pips in the last two days.
While the repeated failure to beat the EMA hurdle despite the weak tone in the USD is a cause for concern, the path of least resistance remains on the high side, as the greenback is on the defensive, having charted a bearish RSI divergence on the daily chart last week.
Further, the markets are worried that the global economic slowdown and housing market risks may force the Fed to pause rate hikes next year. As a result, the 10-year treasury yield risks falling below the double top neckline of 3.057 percent. That would only complicate matters for the USD and help the yellow metal cut through the stiff hurdle of 100-day EMA.
Gold Technical Levels
XAU/USD
Overview:
Last Price: 1221.87
Daily change: -2.1e+2 pips
Daily change: -0.169%
Daily Open: 1223.94
Trends:
Daily SMA20: 1219.69
Daily SMA50: 1215.36
Daily SMA100: 1206.87
Daily SMA200: 1238.59
Levels:
Daily High: 1225.4
Daily Low: 1217.7
Weekly High: 1225.4
Weekly Low: 1196
Monthly High: 1243.43
Monthly Low: 1182.54
Daily Fibonacci 38.2%: 1222.46
Daily Fibonacci 61.8%: 1220.64
Daily Pivot Point S1: 1219.29
Daily Pivot Point S2: 1214.65
Daily Pivot Point S3: 1211.59
Daily Pivot Point R1: 1226.99
Daily Pivot Point R2: 1230.05
Daily Pivot Point R3: 1234.69
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
