- Gold's upside attempt fails at $1,770.
- Bullion rally loses steam with the USD picking up.
- XAU/USD remains trading without a clear bias.
Gold futures’ appreciated on Tuesday, as inflation concerns hurt risk appetite, and the pair reached session highs at $1,770 before pulling back to $1,760 with the USD bouncing up as the US bond yields pare losses. The XAU/USD remains positive in the daily chart, yet still trapped within the last weeks’ horizontal range between $1,745 and $1,770/80.
Gold bulls lose steam as the USD picks up
Bullion is giving away ground on the afternoon US session, weighed by renewed USD strength. The greenback remains firm, fuelled by the firm advance on US treasury yields. The 10-year US T-Bond note has returned to levels past 1.60% after a weak opening, with the investors pricing that the Federal Reserve will soon announce the end of the Quantitative Easing era.
The US dollar index, which measures the value of the USD against a basket of the most traded currencies, remains firm, after bouncing from session lows at 94.25, to reach levels only a few pips shy of year-to-date highs at 94.50.
In the absence of first-tier macroeconomic releases, the market is focusing on September’s US Consumer Prices Index figures and the minutes of the FOMC, due on Wednesday, which could have a significant impact on the US dollar.
XAU/USD remains moving without a clear direction
From a technical perspective, gold prices remain trapped within a consolidative range, with upside attempts limited below $1,770 (October 5 high) and $1,780 (October 8 high) above here, bulls might gain confidence and push the pair towards $1,807 (September 14 and 15 highs).
On the downside, immediate support lies at $1,750 (October 10, 11, and 12 lows), $1,745 (October 6 low), and below here, a key support area at $1,725 (September 29, 30 low).
Technical levels to watch
|Today last price||1760.39|
|Today Daily Change||6.27|
|Today Daily Change %||0.36|
|Today daily open||1754.12|
|Previous Daily High||1761.06|
|Previous Daily Low||1750.24|
|Previous Weekly High||1781.38|
|Previous Weekly Low||1746.07|
|Previous Monthly High||1834.02|
|Previous Monthly Low||1721.71|
|Daily Fibonacci 38.2%||1754.37|
|Daily Fibonacci 61.8%||1756.93|
|Daily Pivot Point S1||1749.22|
|Daily Pivot Point S2||1744.32|
|Daily Pivot Point S3||1738.4|
|Daily Pivot Point R1||1760.04|
|Daily Pivot Point R2||1765.96|
|Daily Pivot Point R3||1770.86|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.