Bottom in place: Gold jumped to 10-day high

Gold (XAU/USD) jumped to 10-day high yesterday, adding credence to long-tailed candles.
Eyes gradually ascending (bullish) 100-day moving average (MA) hurdle.

Omkar Godbole FXStreet Contributor

Having created back-to-back long-tailed doji candles at the 200-day moving average support, gold shot up to a ten-day high of $1,323 - the highest level since April 30.

The yellow metal picked up a bid yesterday as the dollar index (DXY), which tracks the value of the greenback against major currencies, fell from 92.97 to 92.40 after the US April consumer price index (CPI) missed estimates.

The price action indicates the sell-off from the April 11 high of $1,365 has made a temporary low of $1,300 (May 1 low) and the bulls have regained control.

Further, the DXY daily chart shows bearish doji reversal, so the yellow metal may extend gains further to the gradually ascending (100-day MA) of $1,327.

Gold Technical Levels

As of writing, the metal is changing hands at $1,320/Oz. Resistance is lined up at $1,327 (100-day MA), $1328.50 (50-day MA) and support is seen at $1,317 (5-day MA) and $1,314 (10-day MA).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Strongly Bearish	Neutral	High
1H	Bearish	Neutral	Low
4H	Bullish	Overbought	Expanding
1D	Bullish	Neutral	Low
1W	Bullish	Neutral	Low
Updated May 11, 02:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD stays weak near 1.1850 after dismal German ZEW data

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.