Nov 07, 2022
VOT Research Desk
As we enter Monday’s European session, the intraday decline in the price of gold (XAUUSD) is still only 0.5 percent as it moves up to $1,670.
The bright metal so captures the market’s uncertainty ahead of the crucial US Consumer Price Index (CPI) data for October, due for release on Friday, amid the recent discussions about the Fed’s turn and the mixed US jobs report.
However, it should be noted that the risk-off sentiment sparked by China puts downward pressure on the XAUUSD.
It should be highlighted that the recent rumors of a stop in the rate hike trajectory of the world’s central banks, supported by the Reserve Bank of Australia’s (RBA) and Bank of Canada’s (BOC) recent accommodative rate increases, emphasize this week’s US inflation statistics.
If the actual readings confirm the pessimistic predictions, the XAUUSD could experience some recovery.
The viral problems and geopolitical worries about China and Russia, though, could test the optimism.
Gold Technical Analysis Report:
The RSI’s reversal from overbought zone, coupled with Gold’s retreat from a three-week-old resistance line, teases the XAUUSD bearish lately.
The 200-SMA, which was at $1,660 at the time of publication, needs to be broken clearly to the downside for the sellers to maintain control, though.
After that, the metal may try several supports at $1,630 and $1,615 before being directed toward the $1,600 mark.
In the meantime, successful trading above the aforementioned trend line resistance, close to $1,682 at the latest, might target the $1,700 round figure before attempting to challenge the last monthly peak near $1,730.
