|

Gold moves back closer to Wednesday’s 2-week tops

   •  The prevalent USD selling bias continues driving the commodity higher.
   •  Fed rate hike uncertainty beyond 2018 remained supportive of the move.
   •  Bullish traders seemed unaffected by improving global risk-appetite.

Gold prices edged higher on Thursday and moved within striking distance of two-week tops set in the previous session. 

A combination of supporting factors helped the precious metal to regain positive traction on Wednesday and build on last week's goodish rebound from one-month lows. 

Renewed US Dollar selling bias, further weighed down by disappointing US durable goods orders data, was seen as one of the key factors underpinning the dollar-denominated commodity.

Adding to this reports that the Fed might pause the rate hike cycle as early as spring 2019 provided an additional boost and lifted the non-yielding yellow metal to an intraday high level of $1230.

Meanwhile, bullish traders seemed rather unaffected by improving global risk-appetite, as depicted by a positive tone around equity markets, which tends to dampen the precious metal's safe-haven demand. 

However, growing market conviction that the Fed will eventually hike rates in December might turn out to be the only factor keeping a lid on any follow-through/runaway rally for the commodity.

Market participants will be looking for any change in the Fed's forward guidance for 2019 before determining the commodity's near-term direction and placing any aggressive bets.

Technical levels to watch

Any subsequent up-move is likely to confront resistance near the $1233 level, above which the metal is likely to aim towards retesting a resistance marked by 3-1/2 month tops, around the $1243-44  region.

On the flip side, the $1225-24 region now seems to have emerged as an immediate support to defend, which if broken might accelerate the fall back towards weekly lows support near the $1218 level.
 

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Editor's Picks

AUD/USD remains depressed near 0.6950 after RBA minutes

AUD/USD attracts follow-through selling during Tuesday’s Asian session, looking to extend the overnight rejection slide from 0.7000, or a two-week top, following the release of RBA meeting Minutes. The US Dollar retains a bullish undertone near its highest level since April 2025 as energy-driven inflation risks keep December Fed rate hike bets firmly on the table. Adding to this, geopolitical risks further underpin the safe-haven USD.

USD/JPY extends retreat below 158.50 as intervention risks loom

USD/JPY is dropping below 158.50 in the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI inflation print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the pair.

Gold: Bears struggle to breach below $4,150

Gold now gives away its initial gains and resumes its decline, revisiting the $4,160 region per troy ounce on Tuesday. The precious metal’s pullback comes despite the fresh downward trend in the Greenback in combination with a mixed performance of US Treasury yields across the board and easing tensions on the geopolitical front.

Bitcoin rebounds despite cautious sentiment

Bitcoin rebounds over 2%, trading above $83,500 on Tuesday, recovering the previous day’s losses. Persistent geopolitical tensions and mixed signals continue to weigh on risk appetite, keeping investors cautious despite BTC’s recovery.

US – Midterm update: Democratic lead holds three weeks before election

With three weeks until the US midterm election on 3 November, prediction markets are more or less unchanged. Polymarket continues to put the probability of a Democratic sweep at 60-65%. The House is seen as a fairly safe Democratic win, with a probability of around 90%.

Has Bitcoin really escaped the macro forces it was built to fight?
Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?