Gold: Sidelined near $1,490 after PBOC's rate decision


  • Both Gold and US Treasury yields are lacking a clear directional bias. 
  • The PBOC's reluctance to cut rates has failed to move the needle on the yellow metal. 

Gold's struggle for clear directional bias continues after the People's Bank of China's (PBOC) interest rate decision. 

The yellow metal has been restricted largely to a narrow range of $1,500 to $1,480 since last Monday and is currently trading at $1490 per Oz, representing little change on the day. 

The PBOC announced a one-year prime loan rate at 4.20% soon before press time, disappointing expectations for a slight easing via rate cut to 4.15%.

Even so, Gold is showing resilience by avoiding losses. The yellow metal usually drops on the hawkish decisions of central bankers. 

That said, buyers are not willing to step in either, despite technical charts flashing signs of seller exhaustion, as discussed on Friday. 

Focus on US yields

The US 10-year Treasury yield is currently flat-lined around 1.75%. Interestingly, the benchmark yield is also lacking a clear directional bias since Oct. 15. 

Gold will likely come under pressure if the yield ends consolidation with a bullish breakout above 1.80%. 

The yellow metal and borrowing costs tend to move in opposite directions. 

Technical levels

XAU/USD

Overview
Today last price 1490.28
Today Daily Change -0.41
Today Daily Change % -0.03
Today daily open 1490.69
 
Trends
Daily SMA20 1497.78
Daily SMA50 1506.87
Daily SMA100 1454.62
Daily SMA200 1375.6
 
Levels
Previous Daily High 1494.15
Previous Daily Low 1485.06
Previous Weekly High 1497.95
Previous Weekly Low 1477.15
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1488.53
Daily Fibonacci 61.8% 1490.68
Daily Pivot Point S1 1485.78
Daily Pivot Point S2 1480.88
Daily Pivot Point S3 1476.69
Daily Pivot Point R1 1494.87
Daily Pivot Point R2 1499.06
Daily Pivot Point R3 1503.96

 

 

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