Gold: key trendline helps the yellow metal defend $1,200
- The trendline from August lows and the Oct. 8 low is capping the downside in the yellow metal.
- The relief, however, could be short-lived as the dollar looks set to rise further on hawkish Fed.
Gold defended key rising trendline support in Asia. The path of least resistance, however, remains on the downside.
As of writing, the yellow metal is changing hands at $1,204/Oz, having bounced off the psychological support of $1,200 earlier today. Interestingly, the support of the trendline connecting the Aug. 16 low and Oct. 8 low is also lined up at $1,200.
While the defense of the trendline is encouraging, it is still too early to call a bullish reversal. Moreover, the rising trendline could be breached soon as the greenback, gold's biggest nemesis, may continue to rise in the near future on the Fed rate outlook.
The dollar index is currently trading at 97.60, having clocked a 17-month high of 97.69 yesterday. The US central bank is set to hike rates by 25 basis points in December and has signaled three rate hikes in 2019.
Gold Technical Levels
XAU/USD
Overview:
Last Price: 1203.87
Daily change: 3.8e+2 pips
Daily change: 0.314%
Daily Open: 1200.1
Trends:
Daily SMA20: 1224.26
Daily SMA50: 1213.37
Daily SMA100: 1206.62
Daily SMA200: 1241.83
Levels:
Daily High: 1211.48
Daily Low: 1199.7
Weekly High: 1236.6
Weekly Low: 1206.3
Monthly High: 1243.43
Monthly Low: 1182.54
Daily Fibonacci 38.2%: 1204.2
Daily Fibonacci 61.8%: 1206.98
Daily Pivot Point S1: 1196.04
Daily Pivot Point S2: 1191.98
Daily Pivot Point S3: 1184.26
Daily Pivot Point R1: 1207.82
Daily Pivot Point R2: 1215.54
Daily Pivot Point R3: 1219.6
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
