Oct 26, 2022
VOT Research Desk
Market Insights, Considerations & Analytics
Gold price has faltered on its previous rebound as the US dollar makes a comeback.
Cooling aggressive Fed rate hike calls, China concerns and dismal US tech earnings weigh on risk sentiment.
XAU/USD sees range play amid battle lines well-defined ahead of critical US events.
In the midst of a modest comeback staged by the US dollar across the board, the price of gold is floundering in a familiar range around the psychological level of $1,650. There is no follow-through upside bias.
Risk-off flows have returned to the markets as a result of Microsoft and Google’s disappointing earnings, which rekindled fears of a recession and reaffirmed the appeal of the dollar as a safe haven. However, the bright metal keeps the downside cushioned by the risk-aversion-driven weakness in Treasury yields and the easing of aggressive Fed rate hike expectations.
Prior to the critical event risks, such as the ECB rate hike decision and the US advance Q3 GDP, which are scheduled later this week, investors also refrain from placing large bets on the bullion. Any impact on risk sentiment from the US corporate earnings reports and China’s covid updates—which will be crucial for new dollar and gold valuations—will be closely monitored.
Gold’s value Analytics & Indicators
Important levels to keep an eye on According to the Technical Confluence Detector, the price of gold is inching closer to a number of healthy support levels at around $1,650. These levels correspond to the convergence of the SMA50 one hour, SMA10 one day, and the previous low four hours ago.
The next cushion is $1,648, where the Fibonacci 61.8 percent on a single day meets the Fibonacci 38.2 percent on a weekly basis.
The intersection of the SMA5 one-day and Fibonacci 23.6% one-month is anticipated to be $1,644, providing buyers of XAU with their last line of defense.
On the other hand, the price of gold needs to reach $1,657 in one week and one day to clear the convergence of the Fibonacci 23.6 percent. A new upswing toward the 38.2% Fibonacci one-month price of $1,660 will be initiated by a firm break above the latter.
Buyers will then pay attention to the $1,662 high from the previous day.
Indicators
Gold Futures
|
Name |
Value |
Action |
|
RSI(14) |
45.602 |
Neutral |
|
STOCH(9,6) |
42.084 |
Sell |
|
STOCHRSI(14) |
54.722 |
Neutral |
|
MACD(12,26) |
-14.070 |
Sell |
|
ADX(14) |
27.669 |
Sell |
|
Williams %R |
-61.160 |
Sell |
|
Name |
Value |
Action |
|
CCI(14) |
-42.9087 |
Neutral |
|
ATR(14) |
26.4500 |
Less Volatility |
|
Highs/Lows(14) |
0.0000 |
Neutral |
|
Ultimate Oscillator |
47.446 |
Sell |
|
ROC |
-3.498 |
Sell |
|
Bull/Bear Power(13) |
-4.0040 |
Sell |
|
Buy:0 |
Sell:7 |
Neutral:4 |
Indicators Summary: Sell |
Moving Averages (Daily)
|
Name |
MA5 |
MA10 |
MA20 |
MA50 |
MA100 |
MA200 |
|
Gold |
1653.01 |
1654.50 |
1675.38 |
1693.86 |
1736.48 |
1814.27 |
