Gold will Hit 1800 Today ?Gold: Doji, Fedspeak tease bears below $1,800
Support levels: 1,762.90 1,750.00 1,738.35
Resistance levels: 1,782.30 1,794.60 1,803.15
Gold price (XAUUSD) remains depressed at around $1,770 while justifying the previous day’s bearish candlestick formation, as well as sluggish market conditions, during Tuesday’s Asian session.
Analysis:
Technical Overview
The daily chart for the XAUUSD pair favors a continued advance, with market players eyeing a potential breakout of the $1,800 mark. Technical indicators in the mentioned time frame consolidate within overbought levels without signs of upward exhaustion. At the same time, the bright metal develops above its 20 and 100 SMAs, with the shorter one advancing below the longer one. Finally, the 200 SMA reinforces the resistance area around the aforementioned threshold, now at $1,803.15.
The near-term picture favors higher highs ahead. In the 4-hour chart, technical indicators turned marginally higher despite standing in overbought territory as the pair develops above bullish moving averages. The 20 SMA guides the metal higher, while the 100 SMA is crossing above the 200 SMA, both far below the current level at around $1,670, still reflecting buyers’ strength.
Fundamental Overview
The American Dollar recovered some ground on Monday but quickly resumed its decline ahead of the US opening as investors keep moving away from it. Spot gold started the day with a soft tone and fell to an intraday low of $1,753.19 a troy ounce, now trading near a fresh three-month high in the $1,775 price zone.
Financial markets are quieter following two days of wild price action spurred by signs of easing inflation in the United States. The October Consumer Price Index (CPI) rose at an annual pace of 7.7%, much lower than the 8% anticipated by the market or the record peak of 9.1% from last June. Investors rushed to drop the US Dollar amid speculation the US Federal Reserve will pivot on monetary policy in their upcoming December meeting.
Meanwhile, US President Joe Biden met with his Chinese counterpart Xi Jinping. The versions of the outcome differ according to national sources. On the one hand, US President Biden said that they are not looking for conflict and that there will not be a new Cold War. On the other, Chinese media reported that President Xi warned his US counterpart about crossing a “red line” in Taiwan. Both Presidents said they want to find the right direction and manage their differences.
The US Dollar remains under pressure, despite fading optimism. Wall Street trades mixed, with only the Dow Jones Industrial Average posting some modest gains.
