- Spot Gold is settling back from $1,990 as US Treasury yields tick higher.
- Market sentiment is drawing tight in early Tuesday action with a 25 bps rate hike expected from RBA.
- China data also on the docket for Tuesday's early market session.
Gold prices went lower again on Monday, declining 0.75% into $1,977 as US Treasury yields stepped higher once more, pushing the XAU/USD back down after losing the $2,000 handle last Friday.
Gold has faced rejection from the $2,000 handle several times in two weeks, and a technical ceiling could be baking into the XAU/USD.
Tuesday kicks things off with a handful of China data on the economic calendar, to be followed by a broadly-expected 25 basis point rate hike from the Reserve Bank of Australia (RBA).
Before the RBA's forecast rate hike lands on markets, China Trade Balance data lands in the Aisa early Tuesday market session.
China's Exports and Imports are both expected to improve for the year into October; China YoY Exports are forecast to print at -3.1% compared to September's reading of -6.2%.
Meanwhile, annualized Imports for October are forecast to see much less upside, but still improve with a market median forecast of -5.4% compared to September's -6.2%.
With a firmer rebound on the cards for Exports, China's overall Trade Balance for the year into October is expected to print on the upside to $81.85B in US Dollar (USD) terms, compared to September's showing of $77.71B USD.
Forex Today: US Dollar looks vulnerable, RBA expected to raise rates
XAU/USD Technical Outlook
Spot Gold looks set to see a bearish correction on the daily candlesticks barring any bullish resurgence, with XAU/USD beginning to test further away from the $2,000 major handle with each rejection.
Gold bids are looking exhausted trading into seven-month highs, and technical indicators are beginning to flash warning signs of an impending bear move.
The Relative Strength Index (RSI) hit overbought conditions in the last week of October, while the Moving Average Convergence-Divergence (MACD) indicator is seeing a bearish rollover of the signal MA line.
Gold bids are facing potential overbought price levels, and technical support sits at the 200-day Simple Moving Average (SMA), currently grinding higher towards $1,940 and the 21-day Exponential Moving Average (EMA) seeing some lift into $1,960.
Near-term trend momentum appears to be struggling to catch up to both the long and short ends of the MA tails, with the 50-day SMA struggling to lift from the $1,920 level, below both the faster and slower MA lines.
XAU/USD Daily Chart
XAU/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.