Gold sell-off pauses as US dollar retreats from two-month high

  • Dollar's retreat from two-month highs puts brakes on gold sell-off. 
  • Gold's daily chart shows the market has turned indecisive. 
  • Risks, however, remain skewed in favor of deeper losses. 

Gold bears are taking a hiatus amid the US dollar's pullback from two-month highs. 

Indecisive market

The yellow metal witnessed two-way business and closed on a flat note on Thursday, forming a Doji candle – an indecision sign. 

The selling ran out of steam at $1,848 as the uptrend in the dollar index (DXY) paused at 94.59, the highest level since July 24. The DXY closed Thursday at 94.33 and remains sidelined near that level at press time. 

Meanwhile, gold is currently trading near $1,863 per ounce, having ended Thursday at $1,867.

Downside risks persist

While the dollar index has pulled back from multi-week highs in the last 12 hours or so, the upside breakout from the two-month trading range of 92.00-94.00 confirmed earlier this week is still valid. 

Besides, disappointment that Federal Reserve's recent decision to adopt average inflation targeting did not translate into more stimulus, renewed coronavirus fears, and growth concerns could continue to push the dollar higher in the run-up to the US elections. 

As such, the path of least resistance for gold appears to be on the downside. 

Technical levels


Today last price 1863.72
Today Daily Change -3.98
Today Daily Change % -0.21
Today daily open 1867.7
Daily SMA20 1935.48
Daily SMA50 1941.54
Daily SMA100 1843.82
Daily SMA200 1722.91
Previous Daily High 1877.12
Previous Daily Low 1848.84
Previous Weekly High 1973.64
Previous Weekly Low 1932.88
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1866.32
Daily Fibonacci 61.8% 1859.64
Daily Pivot Point S1 1851.99
Daily Pivot Point S2 1836.27
Daily Pivot Point S3 1823.71
Daily Pivot Point R1 1880.27
Daily Pivot Point R2 1892.83
Daily Pivot Point R3 1908.55



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