Oct 25, 2022
VOT Research Desk

Market Insights, Considerations & Analytics

Following the confusion in the US dollar index, the price of gold (XAU/USD) has continued to trade sideways (DXY). During the Tokyo session, the precious metal is making erratic movements in the $1,647.50-1,655.00 area.

When taking into account CME Group’s advanced prints for the gold futures markets, open interest maintained its upward trend on Monday and increased by about 2.4K contracts. Volume, on the other hand, decreased by about 102K contracts while keeping the blockiness unchanged.

Gold appears to be supported at $1,615

With rising open interest, gold started the week in a bearish manner, which indicates that more decrease is still expected in the very near future. However, there is still a chance that gold will drop to its 2022 bottom of $1,614 again (Sept 28 level).

Thinking forwards, a quiet calendar and the paucity of speakers from the Fed may put XAU/USD purchasers to the test. Though, in advance of Thursday’s release of the US Gross Domestic Product for the third quarter, looming threats to the major economies and potential central bank hostility support the gold sellers (Q3).

Technical examination

Positive oscillators join a clear upward break of the prior resistance line from October 6, which is currently at $1,625 as of press time, to move the gold price in the direction of the convergence of the 100-SMA and the 200-SMA, which is close to $1,670.

The metal’s potential rise is constrained by the concealed bearish contrast represented by the upper high on RSI (14) and the lesser high on pricing.

The mid-month top around $1,684 can test the bullish momentum before steering buyers towards to the monthly high close to $1,730 should the XAU/USD bulls overcome the $1,670 barrier.

Gold

1,655.25

Oct 25, 2022 02:27AM (GMT-4:00)

Summary: STRONG SELL

Moving Averages: Buy (2)Sell (10)

Technical Indicators: Buy  (0)Sell (9)

Pivot Points Mix Oct 25, 2022

Technical Indicators

Moving Averages- Mix