In a swift recovery, gold prices surged above $1,970 USD, breaking free from the previous weekly low of $1,950 USD in early Wednesday Asian trading hours. This mild rebound of the precious metal was bolstered by the strengthening US dollar (USD). XAU/USD is currently trading at $1,970 per troy ounce, with the daily chart indicating lower lows and higher highs, hinting at a potential upward momentum. However, technical indicators still show overbought conditions. Notably, this currency pair continues to outpace all its moving averages, with the 20-day Simple Moving Average (SMA) showing a relatively slower uptrend compared to longer-term moving averages.
Risks seem to be on the rise in the near future, as indicated by the 4-hour chart. Technical indicators are significantly higher, albeit with Momentum hovering just below the 100-line. Gold is striving to recover above the rising 20-day SMA while longer moving averages continue to trend significantly higher than the current levels.
Support Levels: $1,964.30, $1,953.30, $1,936.60
Resistance Levels: $1,982.80, $1,997.30, $2,008.10
Increasing demand for the US dollar has weighed down gold prices, pushing XAU/USD to the day's lowest point at $1,953.53 per troy ounce during London trading hours. Financial markets started Tuesday with a slightly optimistic tone as Israel continued to delay its ground assault on the Gaza Strip, hoping for a continued release of hostages by Hamas. Diplomatic solutions appear elusive, despite global authorities urging a peaceful resolution.
Global bonds are recovering, leading to a decrease in yields compared to Monday's peak, exerting mild pressure on the USD throughout the first half of the day. However, the greenback rebounded before the US market opened, propelled by European data signaling a stronger economic downturn at the beginning of Q4, raising concerns about global growth.
The USD maintains its positive momentum following optimistic reports from the United States. S&P Global indicated expanded business activities in October, with preliminary estimates showing a Manufacturing PMI of 50 and a Services PMI of 50.9. Finally, the Composite PMI was reported at 51, the highest in three months.
During the US session, bond yields stabilized, and US indices maintained their positive stance, allowing XAU/USD to trim its losses for the day.
For more financial updates, stay tuned.
Risks seem to be on the rise in the near future, as indicated by the 4-hour chart. Technical indicators are significantly higher, albeit with Momentum hovering just below the 100-line. Gold is striving to recover above the rising 20-day SMA while longer moving averages continue to trend significantly higher than the current levels.
Support Levels: $1,964.30, $1,953.30, $1,936.60
Resistance Levels: $1,982.80, $1,997.30, $2,008.10
Increasing demand for the US dollar has weighed down gold prices, pushing XAU/USD to the day's lowest point at $1,953.53 per troy ounce during London trading hours. Financial markets started Tuesday with a slightly optimistic tone as Israel continued to delay its ground assault on the Gaza Strip, hoping for a continued release of hostages by Hamas. Diplomatic solutions appear elusive, despite global authorities urging a peaceful resolution.
Global bonds are recovering, leading to a decrease in yields compared to Monday's peak, exerting mild pressure on the USD throughout the first half of the day. However, the greenback rebounded before the US market opened, propelled by European data signaling a stronger economic downturn at the beginning of Q4, raising concerns about global growth.
The USD maintains its positive momentum following optimistic reports from the United States. S&P Global indicated expanded business activities in October, with preliminary estimates showing a Manufacturing PMI of 50 and a Services PMI of 50.9. Finally, the Composite PMI was reported at 51, the highest in three months.
During the US session, bond yields stabilized, and US indices maintained their positive stance, allowing XAU/USD to trim its losses for the day.
For more financial updates, stay tuned.
