Gold Price News and Forecast: XAU/USD range play continues, focus on Bollinger bands

FXStreet Team FXStreet

Gold Price Analysis: Range play continues, focus on Bollinger bands

Gold's sideways churn in the range of $1,630 to $1,610 continues for the third day. With the decline in the price volatility, the Bollinger bands have narrowed. Bollinger bands are volatility indicators placed two standard deviations above and below the price's 20-day moving average. A low-volatility period often paves the way for a big move on either side.

The focus, therefore, is on the upper and lower bands currently located at $$1,626 and $1,612, respectively. An hourly close above the upper band would imply a range breakout and open the doors to a test of recent highs above $1,640. Alternatively, a range breakdown would expose the support at $1,594.

Gold is a sitting duck for hungry bears, straddles a fragile 1600/50 range

The price of gold has been consolidating a move int the 1600s, slightly lower today as markets overnight pounced back with a vengeance as investor begin to look through the virus and are seeing the light at the end of the tunnel. At the time of writing, gold is trading at $1,616.26, between a range of $1,615 and $1,626.55.

In New York, North American stocks resumed their climb with a 3.4% advance in the S&P 500, adding to sizeable gains the prior week. Meanwhile, US Treasuries rose on a 5bp selloff in the 30-year, with 10-year yields moving higher by 2bps to 0.70%.

AUD/USD jumps to 0.7050, fresh one-month top after hot Australian CPI

AUD/USD attracts buyers for the second straight day on Wednesday, rising to a fresh high since September 23 during the Asian session. A hot Australian CPI print reaffirmed bets for an imminent RBA rate hike in November and boosted the Australian Dollar. Meanwhile, the US Dollar pauses after a three-day rally to a near two-week high ahead of the crucial FOMC rate decision, lending additional support to the currency pair.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold sticks to intraday losses below $4,050 as USD retains bullish bias ahead of FOMC

Gold remains offered below $4,050 during Wednesday's early European session, snapping a two-day winning streak ahead of the key central bank event. The US Federal Reserve is scheduled to announce its policy decision later today and is widely expected to keep rates unchanged. Meanwhile, the focus will remain on the accompanying monetary policy statement and Fed Chair Kevin Warsh's comments during the post-meeting press conference.

Zcash's bullish momentum mounts on steady ETF inflows, retail confidence

Zcash extends steady recovery above $1,300 on Wednesday, approaching a key resistance near $1,373. Grayscale’s ZEC-focused Exchange-Traded Fund sees persistent buying pressure, with six straight days of inflows, including more than $3 million on Tuesday.

FOMC outlook: Why keeping rates unchanged might not be enough

Tomorrow's FOMC meeting could be quite interesting, even if the Federal Reserve decides to leave interest rates unchanged. According to the latest market expectations, there is currently a 92.8% probability that rates will remain at 3.75–4.00%, while the probability of another 25 basis point increase stands at just 7.2%.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.