Gold rallies further beyond $1500 handle, fresh weekly tops ahead of US CPI


  • Reviving safe-haven demand triggered the initial leg of the intraday up-move.
  • Dovish ECB statement provided an additional boost and remained supportive.
  • Bulls seemed unaffected by stronger USD; eyeing US CPI for a fresh impetus.

Gold built on its goodish intraday up-move and spiked to fresh weekly tops, beyond $1515 level in a knee-jerk reaction to a more dovish tilt by ECB.
 
With investors looking past the recent encouraging trade-related developments, reviving safe-haven demand provided a goodish lift to the precious metal and triggered the initial leg of the up-move from an intraday low level of $1489.
 
The positive momentum got an additional boost after the European Central Bank, as was widely expected, lowered interest rates further into the negative territory by 10 bps to -0.50% at the end of September policy meeting this Thursday.
 
Adding to this, the ECB also announced a new QE program of €20 billion per month from November 1 and reiterated to buy bonds as long as needed, which further drove strong flows towards the non-yielding yellow metal.
 
The up-move took along some short-term trading stops placed near the key $1500 psychological mark and seemed rather unaffected by some renewed US Dollar strength, primarily led by the post-ECB slump in the shared currency.
 
Market participants now look forward to the US economic docket, highlighting the release of consumer inflation figures, which along with the post-meeting ECB press conference will further produce some meaningful trading opportunities.

Technical levels to watch

XAU/USD

Overview
Today last price 1512.4
Today Daily Change 15.20
Today Daily Change % 1.02
Today daily open 1497.2
 
Trends
Daily SMA20 1518.1
Daily SMA50 1471.06
Daily SMA100 1396.72
Daily SMA200 1344.02
Levels
Previous Daily High 1498.3
Previous Daily Low 1485.4
Previous Weekly High 1557.03
Previous Weekly Low 1502.95
Previous Monthly High 1554.63
Previous Monthly Low 1400.9
Daily Fibonacci 38.2% 1493.37
Daily Fibonacci 61.8% 1490.33
Daily Pivot Point S1 1488.97
Daily Pivot Point S2 1480.73
Daily Pivot Point S3 1476.07
Daily Pivot Point R1 1501.87
Daily Pivot Point R2 1506.53
Daily Pivot Point R3 1514.77

 

 

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