Gold spikes to fresh session tops, bulls eyeing a sustained move beyond 100-DMA

Haresh Menghani FXStreet

• A subdued USD action/reviving safe-haven demand helps regain some traction.
• A modest uptick in the US bond yields kept a lid on any meaningful up-move.
• Investors keenly await FOMC meeting minutes for a fresh directional impetus.

Gold reversed an early dip to the $1220 area and is currently placed at the top end of its daily trading range, just above $1225 level.

The US Dollar failed to build on/preserve early modest gains to the 95.00 neighborhood and was seen as one of the key factors underpinning the dollar-denominated commodity.

Meanwhile, the latest leg of a sudden pick up over the past hour or so could further be attributed to reviving safe-haven demand amid a mildly softer tone around European equity markets.

It, however, remains to be seen if the commodity is able to build on the positive momentum or continues with its struggled to sustain above 100-day SMA ahead of the latest FOMC monetary policy meeting minutes.

The September FOMC meeting minutes, due later during the US trading session, will be looked upon for fresh clues over the Fed's rate hike path beyond 2018 and eventually provide some fresh directional impetus for the non-yielding yellow metal.

Ahead of the key event risk, the US economic docket, featuring housing market data - building permits and housing starts, might produce some short-term trading opportunities during the early North-American session.

Technical levels to watch

Any subsequent up-move beyond 100-day SMA might continue to confront some fresh supply near the $1232-33 region, above which the commodity seems all set to aim towards testing $1250 resistance.

On the flip side, immediate strong support is pegged near the $1217 level, which if broken is likely to accelerate the corrective slide back towards $1210 resistance turned support area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold consolidates near $4,000 as recovery remains fragile ahead of Fed decision

Gold (XAU/USD) consolidates modest gains on Monday after last week’s sharp decline pushed the metal to $3,975, its lowest level since August. A pullback in Oil prices offers support as traders react to diplomatic efforts to ease tensions in the Middle East.

Cardano's derivatives and on-chain data confirm bears in control

Cardano extends losses, trading below $0.202 after three consecutive weeks of more than 20% declines since early October. Selling pressure continues to build as weakening derivatives metrics, bearish on-chain signals and a deteriorating technical outlook point to further downside risks. Derivatives data shows a bearish bias for Cardano.

Flight to safety meets a high earnings bar as central bank week begins

Treasuries rallied again, equities are struggling, and central banks and earnings are on the horizon. Last week, US Treasuries rallied for a second consecutive week. This pushed 10s and 30s to 5% and 5.33%, respectively, flattening the curve even as Brent crude rallied about 7% to within striking distance of March peaks at US$119.50, and tech stocks posted a second straight week of losses.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.