Gold Price Analysis: XAU/USD holds onto 100-DMA support ahead of the NFP week

Gold looks south, with the focus on the key 100-DMA support.
$1932/42 zone is the level to beat for the bulls.
Focus on US NFP release for the next direction in gold.

Dhwani Mehta FXStreet

Following the 4.5% weekly loss, Gold (XAU/USD) has locked itself in a $100 range stepping into the critical US Non-Farm Payrolls week, as depicted by the daily chart.

The metal fell to the lowest in two months last week after it faced rejection at the two-month-long falling trendline resistance on several occasions. Adding credence to the breakdown, the 21-day Simple Moving Average (DMA) pierced the 50-DMA from above.

The bright metal delivered a weekly closing at $1862, although remained well above the 100-day Simple Moving Average (DMA) at $1845. Note that the price bounced-off the latter for the second straight day on Friday, allowing for a tepid rebound in the coming week.

However, the bulls need to recapture the immediate hurdle around $1875 for the recovery to gain momentum.

Further north, the confluence zone of the 21 and 50-DMA around $1932/42 is the level to beat for the bulls

On the flip side, a daily closing below the 100-DMA could trigger a sharp sell-off towards the next support at the horizontal trendline at $1791.

The 14-day Relative Strength Index (RSI) has turned flat while holding just above the oversold territory, suggesting that there is further scope to the downside.

Although, Friday’s US NFP report will be a key event risk to determine the next direction in gold prices.

Gold: Daily chart

Gold Additional levels

XAU/USD

Overview
Today last price	1861.76
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1861.76

Trends
Daily SMA20	1930.4
Daily SMA50	1942.58
Daily SMA100	1845.41
Daily SMA200	1724.82

Levels
Previous Daily High	1875.23
Previous Daily Low	1852.46
Previous Weekly High	1955.66
Previous Weekly Low	1848.84
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1861.16
Daily Fibonacci 61.8%	1866.53
Daily Pivot Point S1	1851.07
Daily Pivot Point S2	1840.38
Daily Pivot Point S3	1828.3
Daily Pivot Point R1	1873.84
Daily Pivot Point R2	1885.92
Daily Pivot Point R3	1896.61

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD jumps to 0.7050, fresh one-month top after hot Australian CPI

AUD/USD attracts buyers for the second straight day on Wednesday, rising to a fresh high since September 23 during the Asian session. A hot Australian CPI print reaffirmed bets for an imminent RBA rate hike in November and boosted the Australian Dollar. Meanwhile, the US Dollar pauses after a three-day rally to a near two-week high ahead of the crucial FOMC rate decision, lending additional support to the currency pair.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold drops as oil price rebounds, Fed’s policy eyed

Gold slips 0.3% to near $4,050 in the Asian trade on Wednesday, as oil prices bounce back after a two-day correction. The precious metal is expected to face high volatility as the Federal Reserve is scheduled to announce the monetary policy later in the day at 18:00 GMT.

Bitcoin, Ethereum and XRP recover as Big Tech earnings take center stage

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend their recovery on Wednesday as investors turn their attention to major technology companies' earnings reports. Microsoft and Alphabet are due to report their Q3 earnings on Wednesday, followed by Amazon on Thursday.

FOMC outlook: Why keeping rates unchanged might not be enough

Tomorrow's FOMC meeting could be quite interesting, even if the Federal Reserve decides to leave interest rates unchanged. According to the latest market expectations, there is currently a 92.8% probability that rates will remain at 3.75–4.00%, while the probability of another 25 basis point increase stands at just 7.2%.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.