Gold is showing some signs of life in Tuesday’s trading so far, as the greenback eased broadly amid a risk-on market environment but US-China trade optimism is set to falter XAU/USD’s rebound. Furthermore, dollar stay bulls cautious ahead of Powell’s Jackson Hole appearance, FXStreet’s Dhwani Mehta reports.
Key quotes
“The yellow metal’s upside attempts appear limited, as the risk-on action on the global markets could weigh on the metal. Gold also remains at the risk of the dollar replicating Monday’s comeback moves, in light of the rally in the Treasury yields.”
“Markets will closely watch out for fresh US-China trade developments and US CB Consumer Confidence data for fresh trading impetus. The main highlight for this week remains the Fed Chair Powell's appearance at the Jackson Hole Symposium.”
“Gold is fighting hard to regain the robust resistance near $1937, the confluence of the 21 and 50-hourly Simple Moving Averages (HMA). The hourly RSI, currently at 52.80, is inching higher, suggesting that the bounce from $1924 lows could extend.”
“Although the bearish 100-HMA at $1947 could offer stiff resistance. Acceptance above the latter, the horizontal 200-HMA at $1955 could be tested. A convincing break above that level is critical to reviving the bullish momentum in the near-term.”
“To the downside, a break below the rising trendline support at $1927 could trigger a fresh drop towards the daily lows. Friday’s low at $1912 could be put at risk, further south.”
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 holds steady above 1.0800, looks to post weekly losses
EUR/USD trades marginally higher on the day above 1.0800 after the data from the US showed that Durable Goods Orders declined by 0.8% in September. Nevertheless, the pair remains on track to close the fourth consecutive week in negative territory.
GBP/USD extends recovery to 1.3000 area
GBP/USD extends its recovery and trades at around 1.3000 in the American session on Friday. The US Dollar struggles to gather strength as the market mood remains positive heading into the weekend, allowing the pair to hold its ground.
Gold fluctuates in narrow range below $2,750
Gold stays in a consolidation phase and fluctuates in a relatively tight range below $2,750 on Friday. US Treasury bond yields stabilize in the American session, making it difficult for XAU/USD to gather directional momentum.
Crypto Today: XRP, Bitcoin and Ethereum decline as Ripple files response to SEC appeal
XRP loses over 1.30% as Ripple's executive confirms the filing of an important document in the appeals process in the SEC lawsuit. Bitcoin corrects less than 1% and sustains above $67,500. Ethereum is down nearly 0.20%, holding above the key support level of $2,500.
US elections: The race to the White House tightens
Trump closes in on Harris’s lead in the polls. Neck and neck race spurs market jitters. Outcome still hinges on battleground states.
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.