Slobodan Drvenica
Windsor Brokers
XAU/USD
Gold price rose to the highest in almost two weeks on Wednesday, as bulls regained traction after pausing on Tuesday.
Gold rose on the latest crisis in the Middle East, as high uncertainty and threats of escalation prompted investors into safety, boosting strongly demand for the yellow metal.
In addition, latest dovish remarks from the Fed officials point to softer approach to interest rates in coming months, deflated the greenback and contributed to metal’s bullish near-term outlook.
Situation on daily chart continues to improve as fresh gains broke above Fibo 38.2% of $1947/$1810 bear-leg at $1862 (though needs daily close above here to confirm the signal) and formation of 5/10DMA bull-cross.
On the other hand, 14-d momentum is heading north but still in negative zone and stochastic is strongly overbought, which may obstruct bulls, but near-term bias will stay with bulls while price action holds above $1860 zone (broken Fibo barrier / Wednesday’s low.
Bulls eye next pivots at $1880/84 (50% retracement / 20DMA / former base of mid-Aug) with firm break to further improve near-term picture and unmask key barriers at $1895/$1900 (Fibo 61.8% / psychological).
Caution on break below $1860 zone supports which would make the downside vulnerable of further losses.
The minutes of FOMC latest meeting and US Sep inflation report are the key events in these two days, with softer tones from the central bank and inflation in line or below expectations, to add pressure on dollar and further boost demand for gold.
Res: 1878; 1884; 1895; 1900
Sup: 1862; 1858; 1852l 1842
Interested in XAU/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD rebounds on Thursday after midweek pullback
EUR/USD tuned back into the high end on Thursday, getting bolstered by a broad-market selloff in the Greenback. US data that printed better than expected helped to ease concerns of a possible economic slowdown within the US economy looming over the horizon.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Ethereum investors show bullish bias amid ETF inflows and positive funding rates, exchange reserves pose risk
Ethereum traded around $2,640 on Thursday, up more than 2% following increased bullish bias among investors, as evidenced by ETH ETF net inflows and an uptrend in funding rates. However, investors may be wary of a potential correction from ETH's rising exchange reserve.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.