Gold Surges Above $1,940 Amid Dollar Weakness
Updated
The price of gold has drawn the attention of buyers and traded around $1,946 in the early hours of Asian trading on Tuesday. The precious metal's price surge is bolstered by a weaker US dollar and a decrease in US Treasury bond yields. Investors are closely watching the US Consumer Price Index (CPI) data for October for fresh market cues.
The daily chart for XAU/USD indicates a slight downside bias, as technical indicators target slightly lower levels in the negative territory. However, this currency pair has rebounded above the immediate support level at $1,933.20, which is the 38.2% Fibonacci retracement level of the daily uptrend between $1,810.41 and $2,009.34. Meanwhile, intraday price action has swiftly breached the 100-day and 200-day SMA lines, but the direction remains uncertain, with XAU/USD currently trading around them. Lastly, the SMA 20 shows no clear direction but is significantly above the current levels.
In the short term and based on the 4-hour chart, the downside risk is evident as the currency pair trades below the descending SMA 20, while the SMA 100 remains above the shorter-term SMA. On the other hand, the SMA 200 lacks a clear downward trend. Meanwhile, technical indicators exhibit upward momentum but with limited strength and in negative territory, making another upward move unpredictable.
Support Levels: $1,933.20, $1,923.10, $1,909.80
Resistance Levels: $1,965.30, $1,978.30, $1,989.00
This update provides a clear overview of the current situation in the gold market, highlighting key factors influencing its price movements and outlining both short-term and daily chart perspectives.
The daily chart for XAU/USD indicates a slight downside bias, as technical indicators target slightly lower levels in the negative territory. However, this currency pair has rebounded above the immediate support level at $1,933.20, which is the 38.2% Fibonacci retracement level of the daily uptrend between $1,810.41 and $2,009.34. Meanwhile, intraday price action has swiftly breached the 100-day and 200-day SMA lines, but the direction remains uncertain, with XAU/USD currently trading around them. Lastly, the SMA 20 shows no clear direction but is significantly above the current levels.
In the short term and based on the 4-hour chart, the downside risk is evident as the currency pair trades below the descending SMA 20, while the SMA 100 remains above the shorter-term SMA. On the other hand, the SMA 200 lacks a clear downward trend. Meanwhile, technical indicators exhibit upward momentum but with limited strength and in negative territory, making another upward move unpredictable.
Support Levels: $1,933.20, $1,923.10, $1,909.80
Resistance Levels: $1,965.30, $1,978.30, $1,989.00
This update provides a clear overview of the current situation in the gold market, highlighting key factors influencing its price movements and outlining both short-term and daily chart perspectives.
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