Gold trading weak amid renewed USD strength

Haresh Menghani FXStreet

Gold traded with mild negative bias on Tuesday and dropped to the lower end of a 4-day old trading range.

Currently trading around $1233 level, hawkish comments from Philadelphia Federal Reserve Bank President Patrick Harker, hinting towards possibility of a Fed rate-hike action in March, was seen weighing on the non-yielding precious metal.

Moreover, growing prospects of an eventual Fed rate-hike action triggered a fresh wave of up-move in the US Treasury bond yields and underpinned resurgent US Dollar strength, eventually denting demand for dollar-denominated commodities - like gold.

Furthermore, reviving investors' appetite for riskier assets drove flows away from perceived safe-haven assets and also collaborated to the yellow metal's offered tone ahead of a slew of speeches from various FOMC members on Tuesday and the minutes of the latest FOMC meeting on Wednesday.

Technical levels to watch

From current levels, $1230 level is likely to protect immediate downside below which the slide could get extended towards $1225 intermediate support ahead of 100-day SMA support near $1215 region.

On the upside, momentum above $1240 level might continue to confront resistance at multi-month highs near $1245 region, which if cleared decisively is likely to accelerate the up-move beyond $1250 hurdle towards testing the very important 200-day SMA resistance near $1260-62 region.

1. R3 1234.92
2. R2 1234.82
3. R1 1234.60
PP 1234.50
1. S1 1234.28
2. S2 1234.18
3. S3 1233.96

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 consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

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.