- Gold price has shifted into an inventory adjustment after a sheer decline amid a downbeat market mood.
- The USD Index is aiming to smash the 107.00 hurdle amid an improvement in safe-haven’s appeal.
- Fed’s Mester needs more good inflation reports for supporting the rate hike pause scenario.
Gold price (XAU/USD) has turned sideways in the early Asian session after a perpendicular downfall above the key resistance of $1,760.00. The precious metal is building a cushion of around $1,740.00, at the time of writing. Later, it will be discovered whether the inventory adjustment is an accumulation or a distribution.
The risk profile is still negative, therefore, the odds are favoring the inventory adjustment as a distribution one. The US Dollar Index (DXY) is displaying back-and-forth moves around 106.70 and is aiming to kiss the critical resistance of 107.00 ahead. Meanwhile, the 10-year US Treasury yields are still auctioning below 3.70% despite hawkish commentaries from Federal Reserve (Fed) policymakers.
New York Fed Bank President John Williams is favoring pushing the interest rates to a restrictive level solid enough to propel inflation down and holding them till CY2024. Also, Cleveland Fed Bank President Loretta Mester believes that the Fed is not near to a pause in a rate hike, as reported by Financial Times. She added that more good inflation reports and more signs of moderation are required before building an action plan of pausing rate hikes.
Gold technical analysis
On an hourly scale, gold price is struggling to hold itself above the 23.6% Fibonacci retracement (plotted from November 3 low at $1,616.69 to November 15 high at $1,758.88) at $1,746.50. The precious metal has surrendered the critical support of the 200-period Exponential Moving Average (EMA) at $1,748.10, which was acting as major support earlier.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more weakness ahead.
Gold hourly chart
|Today last price||1741.46|
|Today Daily Change||-14.87|
|Today Daily Change %||-0.85|
|Today daily open||1756.33|
|Previous Daily High||1761.2|
|Previous Daily Low||1746.03|
|Previous Weekly High||1761.2|
|Previous Weekly Low||1721.23|
|Previous Monthly High||1729.58|
|Previous Monthly Low||1617.35|
|Daily Fibonacci 38.2%||1755.41|
|Daily Fibonacci 61.8%||1751.82|
|Daily Pivot Point S1||1747.84|
|Daily Pivot Point S2||1739.35|
|Daily Pivot Point S3||1732.67|
|Daily Pivot Point R1||1763.01|
|Daily Pivot Point R2||1769.69|
|Daily Pivot Point R3||1778.18|
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. 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.