Gold futures have opened the week on a moderately bearish tone, giving away some of the ground taken on the sharp recovery witnessed last Friday. The yellow metal has pulled back from a 10-day high at $1,670 and is now testing the support area at $1,640.
Investors remain cautious in the week opening, awaiting the monetary policy decisions by some of the world’s major central banks, while stock markets are mixed. In the US, the Dow Jones and the S&P Indexes appreciate 0.8% and 0.6%, while the Nasdaq Index eases 0.1%.
The market seems to have digested a news report published by the Wall Street Journal on Friday, suggesting that the Federal Reserve would be open to moderate its tightening cycle in December. The US dollar, as a result, has shrugged off Friday's weakness to appreciate moderately higher which is weighing on gold prices.
On the downside, the support area at $1,645 Is protecting the XAU/USD from further decline, which might push the yellow metal to retest $1,615 (September 28, October 21 lows) ahead of April 2020 lows at $1,575.
On the upside, the pair should appreciate past Friday’s top at $1,670 and the 50-day SMA at $1,695 to regain bullish momentum and set its target at the $1,730/35 area (September 13, October 4 highs).
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.