Gold rises for second day on USD weakness and rising demand from India

The weak tone in the USD - gold's biggest nemesis - is likely pushing gold higher.
A sharp rise in India's gold imports seems to have boosted bullish sentiment.

Omkar Godbole FXStreet Contributor

Gold is flashing green in Asia and is attempting a break above the psychological hurdle, possibly on the back of the losses in the US dollar.

The US dollar exchange rate, as represented by the dollar index (DXY), fell to a low of 94.90 earlier today, having dropped 0.64 percent yesterday. More importantly, the greenback risks falling below the head-and-shoulders neckline support of 94.53 on escalating US-China trade tensions.

Further, the yellow metal is likely taking heart from the rising demand from India, one of the biggest sources of demand for gold. The data released yesterday showed that India's gold imports more than doubled in August to hit their highest level in 15 months.

As a result, the metal may remain well bid during the day ahead, although if the DXY picks up a bid on haven demand, then gold could trim gains. It is worth noting that in the recent past, the US dollar has strengthened during the bouts of risk aversion.

Gold Technical Levels

Resistance: $1,201 (10-day moving average), $1,204.59 (Aug. 3 low), $1,214.30 (Aug. 28 high)

Support: $1,196 (session low), $1,183 (Aug. 24 low), $1,160 (Aug. 16 low)

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Shrinking
1H		Overbought	Shrinking
4H	Bearish	Neutral	Expanding
1D	Bullish	Neutral	Low
1W	Bullish	Neutral	Expanding
Updated Sep 6, 03:30 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD holds above 0.7000 as Fed and RBA, inflation tests loom

The Australian Dollar consolidates for the fourth straight day versus the US Dollar, yet registers modest gains of 0.11%, as price action shifts to choppy ahead of the Federal Reserve’s monetary policy decision. A busy US economic docket barely moved the markets, while traders eye the release of Australia’s Consumer Price Index.

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 rises above $4,050 ahead of Fed rate decision

Gold price jumps to around $4,065 during the early Asian session on Wednesday, bolstered by lower oil prices. Traders await the Federal Reserve's policy meeting later on Wednesday for signals on ‌the future path of US interest rates.

Ethereum ETFs near record monthly outflows as ETH tests $2,310

Ethereum (ETH) held steady on Tuesday, consolidating at $2,340, just above $2,300 after last week’s decline. Three measures sit within about $18 of each other: ETH’s realized price at $2,310, the 200-day Exponential Moving Average (EMA) at $2,315, and the $2,328 average cost basis of wallets holding 1K-10K ETH.

What can we expect from the RBNZ monetary policy decision?

On Wednesday, October 28 at 01:00 GMT, the Reserve Bank of New Zealand, led by Governor Anna Breman, is expected to raise the Overnight Cash Rate by 25 basis points, from 2.75% to 3%, as money markets price in a 100% chance. This would be the third-rate hike by the RBNZ, while the odds for another hike in December are nearly 50%.

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.