Gold Price Analysis: XAU/USD momentum eases for now after stop run sends prices above $1840


  • Gold momentum has waned in recent trade, with the precious metal consolidating at session highs just above $1840.
  • XAU/USD burst above resistance in the low-$1830s earlier in the session amid what appeared to be a stop run.

Spot gold (XAU/USD)’s upside momentum has waned in recent trade, with prices trading in more of a subdued manner near $1842 after bursting above resistance in the low $1830s and then subsequently $1840 for the first time in over two months. The speed of spot gold’s latest advances, especially between the $1830 to $1840 area, is suggestive of a stop run. With market participants amping up hawkish Fed bets in recent weeks, a theme that has weighed heavily on certain parts of the US equity market and sent real and nominal yields surging to multi-month/year highs, many were likely betting on weaker gold prices. Many traders short gold may have had their stop loss sat somewhere in the $1830s.

It is unlikely that spot gold can resist the advances of the US dollar and US real yields forever, and expectations for a very hawkish Fed in 2022 suggest continued upside risks for both. But gold is for now garnering safe-haven demand as geopolitical tensions surrounding Ukraine amp up, market commentators said. US Secretary of State Antony Blinken warned earlier in the day that Russia could attack Ukraine at very short and there are fears this could have a highly inflationary impact on the global economy via higher energy prices. Russia is a key gas supplier to Europe and a key global exporter of crude oil. With WTI at multi-year highs in the upper $80s and further energy price gains likely, investors may be buying gold as an inflation hedge.

XAU/Usd

Overview
Today last price 1841.45
Today Daily Change 27.70
Today Daily Change % 1.53
Today daily open 1813.75
 
Trends
Daily SMA20 1811.29
Daily SMA50 1807.16
Daily SMA100 1793.93
Daily SMA200 1803.53
 
Levels
Previous Daily High 1822.82
Previous Daily Low 1805.84
Previous Weekly High 1829.23
Previous Weekly Low 1790.43
Previous Monthly High 1830.39
Previous Monthly Low 1753.01
Daily Fibonacci 38.2% 1812.33
Daily Fibonacci 61.8% 1816.33
Daily Pivot Point S1 1805.45
Daily Pivot Point S2 1797.16
Daily Pivot Point S3 1788.47
Daily Pivot Point R1 1822.43
Daily Pivot Point R2 1831.12
Daily Pivot Point R3 1839.41

 

 

Share: Feed news

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended content

Editors’ Picks

USD/JPY pops and drops on BoJ's expected hold

USD/JPY pops and drops on BoJ's expected hold

USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.  

USD/JPY News
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed. 

AUD/USD News
Gold consolidates near record high, bullish potential seems intact

Gold consolidates near record high, bullish potential seems intact

Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.

Gold News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures