Gold Price Analysis: XAU/USD tumbles to fresh lows sub-$1,900/oz

  • Gold prices rapidly lose momentum and breach $1,900/oz.
  • The greenback gathers further traction and hurt the metal.
  • US CPI figures fell in line with previous estimates in September.

Prices of the ounce troy of the precious metal lost further ground on Tuesday and challenge 3-day lows in the sub-$1,900 area on the back of the strong pick up in the demand for the greenback.

In fact, a bout of risk aversion benefits the greenback following the opening bell in Wall St. after House Speaker N.Pelosi said the recent proposal from President Trump on extra fiscal stimulus fell significantly short of expectations. Pelosi, however, expects both parties could clinch a deal eventually.

While the US Dollar Index (DXY) navigates in the area of 2-day highs around 93.50, the yellow metal tests 3-day lows near the $1,890 per ounce.

Earlier in the session, September’s US inflation figures measured by the CPI showed headline consumer prices rose 0.2% inter-month and 1.4% over the last twelve months. Furthermore, prices excluding food and energy costs rose 0.2% MoM and 1.7% from a year earlier. Extra data saw the NFIB Index at 104.0 in September and the IBD/TIPP Index is due later.

Gold key levels

As of writing Gold is losing 1.65% at $1,890.72 and faces the next support at $1,873.05 (monthly low Oct.7) seconded by $1,873.01 (50% Fibo of the June-August rally) and then $1,848.66 (monthly low Sep.24). On the other hand, a breakout of $1,933.28 (monthly high Oct.12) would expose $1992,63 (monthly high Sep1) and finally $2,015.65 (high Aug.18).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD wavers below 0.7300 ahead of Aussie Trade Balance

AUD/USD fades pullback from 0.7264 after marking another failure to cross 0.7340 on D1 closing. DXY rebounds from a 12-week low as US PMIs performed better than EU data in November. Australia’s preliminary Trade Balance for October, RBA’s Debelle can offer immediate direction.


Gold in bearish consolidation below $1840, remains vulnerable

Gold (XAU/USD) is nursing losses in Tuesday’s Asian trading, having slumped 2% on Monday to reach the lowest levels in four months at $1831. Vaccine progress, stronger US data hammer gold prices. Focus on vaccine updates and risk sentiment for fresh impetus.

Gold news

USD/JPY regains 104.50, could extend recovery

The USD/JPY pair hit a one-week high of 104.63 and is set to extend gains on persistent dollar’s strength. The positive tone of equities provide additional support to the pair.


Bitcoin risks a correction to $12,000

Peter Brandt, author, and publisher of the Factor Report, has exited around 50% of his Bitcoin position. The veteran trader believes Bitcoin might be poised for a correction to $12,000 in the near future.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info