Gold Price Analysis: Resistance-turned-support trendline keeps $1,700 on the cards

Gold prices pull back from multi-year high amid overbought RSI.
An ascending trend line from September 2019, 21-day SMA offer nearby supports.
Bulls will target the year 2013 top, $1700 during the fresh run-up.

Anil Panchal FXStreet

Gold recovers most of the early-day losses while trading around $1,658, -0.10%, while heading into the European session on Tuesday. Even so, it needs to cross Monday’s high for the fresh rise.

If the yellow metal manages to ignore overbought RSI conditions beyond $1,690, the high of 2013 near $1696 as well as $1,700 will be on the bulls’ radar.

It should, however, be noted that the commodity’s rise past-$1,700 can take aim at highs marked during November and October 2012, respectively near $1,751 and $1,794.

Alternatively, the metal’s declines below the stated resistance-turned-support, at $1,633 now, can recall March 2013 top near $1,617 and $1,600 mark ahead of pushing the bears to 21-day SMA near $1,590.

Gold daily chart

Trend: Bullish

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold resumes its decline below $4,400

Gold maintains an erratic trade so far this week, now slipping back below the key $4,400 mark per troy ounce following the stronger US Dollar and a strong rebound in US Treasury yields across the curve, particularly following US Producer Prices.

XRP slides amid a fragile crypto market structure

Ripple (XRP) falls for the second straight day, trading at $1.37 on Thursday. The broader cryptocurrency market remains fragile as investors weigh the impact of geopolitical tensions in the Middle East, which triggered persistent increases in Crude Oil prices while restricting shipping through the Straight of Hormuz and the Red Sea.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.