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

XAU/USD

Overview
Today last price 1863.72
Today Daily Change -3.98
Today Daily Change % -0.21
Today daily open 1867.7
 
Trends
Daily SMA20 1935.48
Daily SMA50 1941.54
Daily SMA100 1843.82
Daily SMA200 1722.91
 
Levels
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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD edges above 1.18 amid mixed US data, slim stimulus hopes

EUR/USD is trading above 1.30 after US Durable Goods Orders beat expectations but Consumer Confidence missed estimates. Hopes for a US stimulus deal are slim with a week left until the elections.

EUR/USD News

GBP/USD stabilizes above 1.30 amid Brexit and covid uncertainty

GBP/USD is hovering above the round 1.30 levels as rising UK COVID-19 cases, uncertainty about Brexit, and PM Johnson's political problems weigh on sterling. US data has been mixed.

GBP/USD News

XAU/USD pares early gains, turns flat near $1,900

For the third straight trading day on Tuesday, the XAU/USD pair is moving sideways above $1,900 as participants wait for the next significant catalyst. After climbing to a daily high of $1,910 earlier in the day, the pair lost its traction and was last seen trading virtually unchanged on the day at $1,902.

Gold News

Bitcoin breaks new yearly highs; the road to $15,000 is clear

Bitcoin breaks new yearly highs and hits $13,464. The road to $15,000 is clear as there are no major resistance levels above the current price.

Read more

WTI trims losses and moves near $39.00/bbl ahead of API

Following two consecutive daily pullbacks, prices of the West Texas Intermediate regain some buying interest and reach the $39.00 mark per barrel on turnaround Tuesday.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures