Gold Price Forecast: XAU/USD capped at $1,770, returns to previous ranges

  • 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
Daily SMA20 1759.76
Daily SMA50 1778.37
Daily SMA100 1802.73
Daily SMA200 1798.49
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




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