Gold price remained under moderate selling pressure for the second day in a row.
On Tuesday, the gold price (XAUUSD) struggles to benefit on the previous day’s late bounce from the $1,908 region and falls for the second consecutive day.
The Gold is still being weighed down by a bullish risk tone and rising US bond rates.
The precious metal continues its offering tone as the European session begins. And it is under pressure from a bullish risk tone. Which tends to damage conventional safe-haven assets. Aside from that, rising US Treasury bond rates have been buoyed by firming prospects for more policy changes. The Federal Reserve’s (Fed) tightening is another factor impacting on the non-yielding yellow metal.
The downside for the gold price, on the other hand, is mitigated by the current Israel-Hamas war. This, together with growing consensus. That the Federal Reserve (Fed) will leave interest rates steady for the second time in a row in November, may provide some support for the XAUUSD. Meanwhile, dovish Fed views kept proponents of the US Dollar (USD) on the defensive. Limiting losses for the US Dollar-denominated commodities. Before putting directional bets, traders may also choose to wait for clues regarding the Fed’s potential rate-hike course.
As a result, the spotlight will remain on Fed Chair Jerome Powell’s anticipated speech on Thursday. Which will determine the next rate hike. The Gold price is in the middle of a directional move. Meanwhile, Tuesday’s US economic calendar. Which includes monthly Retail Sales and Industrial Production reports, will be scrutinized for any stimulus. Meanwhile, the recent failure at a theoretically critical 200-day Simple Moving Average (SMA) calls for caution before resuming a strong rebound move from the $1,810 level, or a multi-month low reached on October 6.
Technical Outlook
For bulls to retake control, the gold price must remain above the 200-day simple moving average.
Technically, any future decrease is anticipated to draw new buyers and to be capped near the $1,900 round-figure threshold, which corresponds to the 100-day SMA. This, in turn, should serve as a critical crucial point, which, if broken, will result in render the gold price vulnerable to additional declines towards the next key support at the $1,868 horizontal zone en route to the $1,860-1,855 area.
On the other hand, the 200-day SMA, which is approaching Friday’s swing high in the $1,932-1,933 range. May continue to operate as an immediate strong barrier. Some follow-through purchasing will be viewed as a new trigger for bulls. Lifting the Gold price back towards the $1,945-1,947 supply zone. A sustained rise over the latter will pave the way for a further rise towards the $1,970 zone.
