Gold Attracts Buyers Above $1,940 USD
The price of gold is drawing attention as it hovers around $1,946 USD during the early hours of trading in Asia on Tuesday. The precious metal's price surge is supported by a weaker US dollar and a decline in US Treasury bond yields. Investors are closely monitoring the US Consumer Price Index (CPI) data for October for fresh market cues.
The daily chart of XAU/USD indicates a slight downside bias, with technical indicators pointing towards a slightly lower target. However, the currency pair has rebounded above the 38.2% Fibonacci retracement level of the daily rise from $1,810.41 USD to $2,009.34 USD, finding immediate support at $1,933.20 USD. Simultaneously, the intraday price dip quickly breached the 100-day and 200-day SMAs, which currently have no clear direction, though XAU/USD is trading above them. Lastly, the SMA 20 remains undecided, well above the current level.
In the short term and on the 4-hour chart, the downside risk prevails as the currency pair trades below the descending SMA 20, while the SMA 100 remains above the shorter SMA. On the flip side, the SMA 200 still lacks direction below the current level. Meanwhile, technical indicators show some upward momentum but with limited strength and in negative territory, making it challenging to predict a decisive move to the upside.
Support Levels: $1,933.20, $1,923.10, $1,909.80
Resistance Levels: $1,965.30, $1,978.30, $1,989.00
In summary, the gold market is experiencing heightened interest, driven by factors such as a softer US dollar and declining bond yields. The technical outlook suggests a cautious approach, with support and resistance levels outlined for traders navigating this dynamic market. Investors await the upcoming US CPI data for potential market-moving catalysts.
The daily chart of XAU/USD indicates a slight downside bias, with technical indicators pointing towards a slightly lower target. However, the currency pair has rebounded above the 38.2% Fibonacci retracement level of the daily rise from $1,810.41 USD to $2,009.34 USD, finding immediate support at $1,933.20 USD. Simultaneously, the intraday price dip quickly breached the 100-day and 200-day SMAs, which currently have no clear direction, though XAU/USD is trading above them. Lastly, the SMA 20 remains undecided, well above the current level.
In the short term and on the 4-hour chart, the downside risk prevails as the currency pair trades below the descending SMA 20, while the SMA 100 remains above the shorter SMA. On the flip side, the SMA 200 still lacks direction below the current level. Meanwhile, technical indicators show some upward momentum but with limited strength and in negative territory, making it challenging to predict a decisive move to the upside.
Support Levels: $1,933.20, $1,923.10, $1,909.80
Resistance Levels: $1,965.30, $1,978.30, $1,989.00
In summary, the gold market is experiencing heightened interest, driven by factors such as a softer US dollar and declining bond yields. The technical outlook suggests a cautious approach, with support and resistance levels outlined for traders navigating this dynamic market. Investors await the upcoming US CPI data for potential market-moving catalysts.
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