- Gold prices have rebounded firmly from $1,630.00, supporting a further pullback move.
- The risk-off market mood pushed the DXY above 114.50.
- Weaker forecasts for US Durable Goods Orders data will restrict the DXY’s upside.
Gold price (XAU/USD) has recovered the major portion of the losses recorded in the Tokyo session. The precious metal declined sharply to near $1,630.00 but recovered firmly and is indicating a formation of buying tail, which indicates a strong responsive buying structure. The yellow metal is attempting to shift into the prior balanced area placed in a narrow range of $1,640.00-1,649.06.
Meanwhile, the US dollar index (DXY) moved sharply to 114.52 as the risk profile turned sour on China’s leader Xi Jinping's house arrest and the Russian Federation’s warning of a nuclear attack in retaliation to western sanctions. The G-7 cartel is aiming to cripple the Russian economy by enforcing a spree of western sanctions so that that trading structure could get demolished.
The firmer move by the DXY towards 114.52 has also picked offers too ahead of US Durable Goods Orders data. As per the consensus, the economic data will decline by 1.1% against the prior decline of 0.1%. The impact will mainly come from weaker demand for gasoline and a 20 basis point (bps) decline in the headline Consumer Price Index (CPI) in the August reading.
Gold technical analysis
On an hourly scale, the gold prices are attempting to hit the 20-period Exponential Moving Average (EMA) at $1,650.54. If the precious metal manages to overstep the 20-EMA, it will find major barricades around the horizontal resistance placed from September 16 low at $1,654.41.
The Relative Strength Index (RSI) (14) is oscillating in a 20.00-40.00 range, which indicates that the downside momentum is still intact.
Gold hourly chart
|Today last price||1640.41|
|Today Daily Change||-4.25|
|Today Daily Change %||-0.26|
|Today daily open||1644.66|
|Previous Daily High||1675.92|
|Previous Daily Low||1639.85|
|Previous Weekly High||1688.11|
|Previous Weekly Low||1639.85|
|Previous Monthly High||1807.93|
|Previous Monthly Low||1709.68|
|Daily Fibonacci 38.2%||1653.63|
|Daily Fibonacci 61.8%||1662.14|
|Daily Pivot Point S1||1631.03|
|Daily Pivot Point S2||1617.41|
|Daily Pivot Point S3||1594.96|
|Daily Pivot Point R1||1667.1|
|Daily Pivot Point R2||1689.55|
|Daily Pivot Point R3||1703.17|
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