- Gold fluctuates in the American session amid the uncertainty of the mid-term elections in the United States.
- US Treasury yields are rising, supporting the dollar, which is up more than 0.50% against most G8 countries.
- Gold Price Analysis: Testing the 100 day EMA which once broken would change the bias to neutral to the upside as buyers are in control.
Gold price is trading lower, unable to break the key resistance level around $1,716, while US Treasury yields are rising, supporting the US dollar, which according to the US Dollar Index US, fell below 110,000 on Tuesday. Factors such as the US mid-term elections commanded attention, with a tighter-than-expected race weighing on market sentiment. At the time of writing, XAUUSD is trading at $1,711.50, with fluctuations.
Gold remains trendless around $1,710 ahead of US mid-term election results and CPI
US stocks will open lower, as the futures market shows. The tight race between Republicans and Democrats has fueled sentiment as polls suggest the former could regain control of the US House of Representatives, while Democrats would retain control of the US Senate. That said , US Treasury yields rose, led by a two basis point rise in the 10-year yield to 4.155%, which was a tailwind for the precious metals space.
Additionally, the US 10-year real yield, which is the 10-year bond yield minus inflation expectations for the same time horizon, stands at 1.70%, capping gold’s rally on Tuesday. For its part, the Dollar Index, which measures the value of the dollar against a basket of currencies, breaks three days of consecutive losses and rises 0.54% to 110,220.
Last week, the World Gold Council reported that central banks bought 400 tonnes of gold in the third quarter, which, based on last year’s data, was a 300% increase, and was the largest amount of gold ever bought since 2000.
That said, expectations of gold resuming the uptrend are in the hands of the Federal Reserve. The US inflation report for October will keep investors on the lookout for the Fed’s next move. A rise in US inflation would not deter Fed policymakers from tightening monetary policy.
So if inflation moderates, that could be a tailwind for XAUUSD, which could benefit from “parked” US Treasury yields.
Gold Price Analysis: Technical Outlook
Following Tuesday’s rally, which broke an eight-month resistance trend line, XAUUSD is facing solid resistance at the 100-day EMA at $1,715.91. It must be said that gold made a base around the lows so far this year, around $1614-$1617, and that zone was tested three times, without the USD buyers being able to break the 1600 figure. Dollars. Therefore, the daily high of Aug 25 at $1,765.48 is likely to be tested, but XAU buyers need to break above the 100-day EMA.
Once this is done, the next resistance for XAUUSD would be the daily low of August 22 at $1,727.90, followed by the psychological level of $1,750.
|last price today||1711.75|
|today daily change||-0.36|
|Today Daily variation in %||-0.02|
|Daily opening today||1712.11|
|Previous daily high||1716.95|
|Previous Daily Low||1664.76|
|Previous Weekly High||1682.49|
|Previous Weekly Low||1616.69|
|Previous Monthly High||1729.58|
|Previous Monthly Low||1617.35|
|Daily Fibonacci of 38.2%||1697.01|
|Fibonacci 61.8% daily||1684.7|
|Daily Pivot Point S1||1678.93|
|Daily Pivot Point S2||1645.75|
|Daily Pivot Point S3||1626.74|
|Daily Pivot Point R1||1731.12|
|Daily Pivot Point R2||1750.13|
|Daily Pivot Point R3||1783.31|
Source: Fx Street