- 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.
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.
|Today last price||1863.72|
|Today Daily Change||-3.98|
|Today Daily Change %||-0.21|
|Today daily open||1867.7|
|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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