VOT Research Desk
Despite the most recent rally from an intraday low, the price of gold (XAUUSD) maintains its recent decline from a multi-day high as a higher US Dollar joins mixed mood to defy recent commodities purchasers.
The rising Covid problems in China and recently firmer US statistics, such as the Producer Price Index (PPI) and Retail Sales for October, which cast doubt on the US Federal Reserve’s (Fed) east rate hikes, provide the precious metal with guidance.
Fears of a political impasse in the US, where the Democratic Party now controls the Senate and the Republicans are vying for a majority in the House of Representatives, are also a drag on the price of gold.
However, it should be emphasised that a lack of significant information or occurrences allow the XAUUSD to recover recent losses.
XAU/USD Technical Analysis
As it reduces the largest weekly advances since March 2020, the gold price retreats from a dense patch of resistance below $1,778 .
The 100-HMA and the previous high on the weekly and Pivot Point One-Day S1 convergence, among others, limit the gold price’s immediate upward movement at roughly $1,769.
In order to highlight $1,773 as a difficult nut to crack for the XAUUSD bulls, the middle band of the Bollinger on the four-hour play joins the Pivot Point One-Month R2 and Fibonacci 23.6% on D1.
It’s important to note that the $1,778 level appears to be the last line of defense for the gold bears. However, Pivot Point One-Day S2 and lower Bollinger on the hourly play limit the immediate fall.
The barrier is Fibonacci 38.2% on D1. If the support level of $1,762 is breached, the price of gold is likely to fall to the Pivot Point One-Day S3, which is located near $1,754, before heading in the direction of the Fibonacci 23.6% on Weekly formation, which is located at $1,744.
