- Gold tries to recover after Tuesday’s crash.
- Dollar falls modestly, equity markets recover.
- Another US inflation data is coming: the Producer Price Index.
Gold fell to $1697 and then bounced back up to the $1705 area, where it is trading, recovering. Stability in financial markets after Tuesday’s stock and bond plunge helps the yellow metal regain ground, but doubts prevail.
Calm returns, will it last?
Tuesday’s US August inflation data sparked a sharp fall in the stock markets and a rally in the dollar. Analysts began to see a 100 basis point hike more possible when the FOMC meets next week. The wholesale inflation data will be published on Wednesday.
The above generated a strong reversal in gold, which went from testing levels above $1,730 to falling to $1,700. In the Asian session on Wednesday, XAUUSD matched Tuesday’s low of $1,697 before bouncing.
In the previous American session the Prayed is trading at intraday highs at $1705, attempting to extend the rally. It has been stable for hours, but in the background downward pressures predominate. The wholesale inflation data can have a great impact.
A confirmation below $1699 would pave the way for fresh weekly lows. and a test at $1690. Below that follows the support at $1680 and then comes the long-term support zone at $1675.
In the opposite direction now $1711 is the first strong resistance, followed later by $1720. The key level to break is $1730/35, where a confirmation above would point to further gains.
Technical levels
XAU/USD
Panorama | |
---|---|
Last Price Today | 1704.98 |
Today’s Daily Change | 2.80 |
Today’s Daily Change % | 0.16 |
Today’s Daily Opening | 1702.18 |
Trends | |
---|---|
20 Daily SMA | 1728.35 |
50 Daily SMA | 1740.95 |
100 Daily SMA | 1791.91 |
200 Daily SMA | 1832.87 |
levels | |
---|---|
Previous Daily High | 1731.87 |
Previous Daily Minimum | 1697.09 |
Previous Maximum Weekly | 1729.57 |
Previous Weekly Minimum | 1691.47 |
Monthly Prior Maximum | 1807.93 |
Previous Monthly Minimum | 1709.68 |
Daily Fibonacci 38.2% | 1710.38 |
Daily Fibonacci 61.8% | 1718.58 |
Daily Pivot Point S1 | 1688.89 |
Daily Pivot Point S2 | 1675.6 |
Daily Pivot Point S3 | 1654.11 |
Daily Pivot Point R1 | 1723.67 |
Daily Pivot Point R2 | 1745.16 |
Daily Pivot Point R3 | 1758.45 |
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.