Gold Price News and Forecast: XAU/USD positive above $1,570 as China’s coronavirus heavies risk-tone

FXStreet Team FXStreet

Gold one-year risk reversals hit lowest since June

Gold one-year risk reversals, a gauge of calls to puts on the yellow metal and a barometer of positioning and sentiment, fell to the lowest level in eight months on Monday, indicating a weakening of demand for the call options or bullish bets.

The risk reversals declined to 3.125, a level last seen on June 21, having topped out at 4.425 in the first week of January, when the US-Iran tensions had triggered a flight to safety and put a haven bid under gold.

Gold: Positive above $1,570 as China’s coronavirus heavies risk-tone

Gold prices remain on the front foot around $1,573 during Monday’s Asian session. In doing so, the yellow metal rises for the fourth consecutive day while also challenging the highest levels since last Tuesday. China’s coronavirus has been the key risk driver off-late. Even so, the broad US dollar rally questions the bullion buyers.

Be it policymakers from RBA and Japan or the Fed’s semi-annual report, not to forget global producers, everyone now expects China’s epidemic to have a serious negative impact on the macros.

XAU/USD

Overview
Today last price	1570.32
Today Daily Change	0.19
Today Daily Change %	0.01
Today daily open	1570.13

Trends
Daily SMA20	1564.68
Daily SMA50	1526.34
Daily SMA100	1506.11
Daily SMA200	1459.12

Levels
Previous Daily High	1574.14
Previous Daily Low	1560.5
Previous Weekly High	1594.01
Previous Weekly Low	1547.56
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1568.93
Daily Fibonacci 61.8%	1565.71
Daily Pivot Point S1	1562.37
Daily Pivot Point S2	1554.62
Daily Pivot Point S3	1548.73
Daily Pivot Point R1	1576.01
Daily Pivot Point R2	1581.9
Daily Pivot Point R3	1589.65

FXStreet Indonesian Site - new domain!
Access it at www.fxstreet-id.com

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD remains depressed 0.7000, awaits FOMC Minutes

AUD/USD struggles to capitalize on its recent recovery move and trades with a negative bias below 0.7000 in Wednesday's Asian session. Amid geopolitical uncertainty, the US Dollar attracts some dip-buyers after a fresh leg up in US bond yields, keeping the pair under pressure despite hawkish RBA expectations. All eyes now remain on the FOMC Minutes.

USD/JPY holds firm near 158.50 ahead of Fed Minutes

USD/JPY hangs close to a one-and-a-half-week high near 158.50 in the Asian session on Wednesday, with bulls now awaiting a move beyond the 200-day SMA hurdle before positioning for further gains ahead of the FOMC Minutes. Meanwhile, a fresh leg up in US bond yields revives US Dollar demand amid geopolitical uncertainties, boosting the pair amid dovish BoJ commentary.

Gold eyes Fed Minutes for fresh impetus after holding $4,100

Gold is fading the previous rebound in Asia on Wednesday, struggling near $4,150. US Dollar bounces in sync with Oil prices and US Treasury yields ahead of FOMC Minutes. From a short-term technical view, Gold remains a ‘sell-on-bounce’ trade.

RBI hikes the Repo Rate by 25 bps to 5.5% in October, as expected

The Reserve Bank of India’s Monetary Policy Committee announced on Wednesday that it raised the benchmark Repo Rate by 25 basis points to 5.50% from 5.25% following the conclusion of the October monetary policy meeting. The decision came in line with the market expectations.

France's government could fall over the budget. Here's what that would actually mean for the Euro

The Euro (EUR) is trading at its lowest level since May 2025, nearly 7% below its January peak, and France's government could fall over its 2027 budget before the end of November. A French government falling hasn't moved the Euro much by itself, so the risk to price is narrower: France losing its place under the emergency safety net the European Central Bank (ECB) keeps for government bonds.

Eurozone inflation just hit 3.8%, its highest in three years. This chart shows why the ECB can’t simply hike its way out

The ECB would normally have a relatively straightforward answer to inflation running almost twice its target: raise interest rates. But these are not normal circumstances. This time, the bond market is already doing part of the tightening for it, leaving the ECB facing an increasingly difficult dilemma.