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.

Omkar Godbole FXStreet Contributor

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.

EUR/USD holds gains around 1.1800 amid renewed USD selling

EUR/USD regains positive traction and holds around 1.1800 in the European session, reversing the previous day's modest losses. The pair's uptick is sponsored by the emergence of fresh US Dollar selling, which remains induced by persistent trade-related uncertainties.

GBP/USD strengthens above 1.3500 on softer US Dollar

GBP/USD is posting moderate gains above 1.3500 in European trading on Wednesday. The pair appreciates as the US Dollar meets fresh supply following US President Donald Trump’s first State of the Union address and amid looming tariff uncertainty.

Gold eyes monthly top above $5,200 amid geopolitics, trade jitters

Gold buyers are back in the game, eyeing $5,200 and beyonf on Wednesday after seeing a correction from monthly highs on Tuesday. The US Dollar slips after Trump’s SOTU fails to impress and as AI-driven worries ease. Dovish Fed bets also weigh. Gold looks north so long as the key 61.8% Fibo resistance at $5,142 holds on the daily chart.

Bitcoin, Ethereum and Ripple post cautious recovery amid downside risks

Bitcoin, Ethereum, and Ripple are posting a cautious recovery on Wednesday following a market correction earlier this week. BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.