Gold price remains stronger at its highest level in a month.
The gold price (XAUUSD) is on the offensive as bulls push the early August swing high while maintaining control over the $1,936-38 support. As a result, the precious metal welcomes the US Dollar’s fall over concerns about the Federal Reserve’s (Fed) policy turn, especially after seeing primarily negative numbers in recent days. As a result of this, the US Dollar IndexWith minor losses to approximately 104.15, DXY) ends a two-day winning run.
Gold buyers are propelled by Sino-American tensions and a lack of important data/events.
Aside from the weaker US dollar, China’s numerous actions to safeguard the world’s second-largest economy boosted the XAUUSD price, since the Dragon Nation is one of the world’s largest Gold buyers. Among the most recent initiatives has been the government’s formation of a special cell to support the private economy and remove impediments to the services industry. Previously, China’s central bank, the People’s Bank of China (PBoC), announced a significant reduction in its foreign currency reserve requirement ratio (FX RRR) from 6.0% to 4% starting September 15. In addition, to relieve the pressure from reduced mortgage rates, a spate of Chinese banks slashed interest rates on Yuan deposits. announced earlier.
Downbeat yields and cautious confidence in Asia support the gold price.
Elsewhere, the recent decline in US Treasury bond rates supports the gold price recovery, particularly if the XAUUSD remains stronger above important technical support.
Moving on, the holiday-shortened week, along with the US-China conflict, may put gold purchasers to the test. However, the US ISM Services PMI and China inflation figures, as well as Beijing’s stimulus initiatives, may entice bullion speculators.
Key levels to monitor
Technical indicator indicates that the Gold Price is solidly above the $1,936-38 support confluence, which includes the Fibonacci 61.8% on one-month, 5-DMA, and the lower Bollinger band on the 4 hour chart. .
The $1,942 level, which contains the Fibonacci 38.2% on one-day as well as the middle band of the Bollinger on the hourly and 4H forms, also limits the XAU/USD’s short-term downside.
It is worth noting, however, that gold price weakening beyond $1,936 will require confirmation from $1,932 to persuade sellers. Nonetheless, the suggested support confluence comprises the 50-day moving average and the Pivot Point one-day S1.
Alternatively, the previous monthly high of roughly $1,967 looks to be tempting XAU/USD investors as the commodity continues to rise. Following that, a region with many barriers identified between May and July, worth roughly $1,985, will be highlighted.
Overall, the Gold Price has less impediments to the north, but US data and China news might put the price to the test.
