Aayush Jindal
Key Highlights
- Gold started a downside correction below the $2,650 level.
- It traded below a key contracting triangle with support at $2,635 on the 4-hour chart.
- Oil prices trimmed gains from the $78.80 resistance zone.
- EUR/USD could extend losses unless there is a move above 1.1000.
Gold Price Technical Analysis
Gold prices failed to extend gains toward $2,700 against the US Dollar. The price started a downside correction below the $2,660 and $2,650 levels.
The 4-hour chart of XAU/USD indicates that the price traded below a key contracting triangle with support at $2,635. The price dipped below the 23.6% Fib retracement level of the upward move from the $2,485 swing low to the $2,685 high.
The bears even pushed the price below the 100 Simple Moving Average (red, 4 hours). On the downside, initial support is near the $2,600 level.
The first major support is near the $2,585 level. It is close to the 50% Fib retracement level of the upward move from the $2,485 swing low to the $2,685 high. The main support is now near $2,560 and the 200 Simple Moving Average (green, 4 hours).
A downside break below the $2,560 support might call for more downsides. The next major support is near the $2,532 level.
On the upside, immediate resistance is near the $2,635 level. The first major resistance sits near the $2,645 level. A clear move above the $2,645 resistance could open the doors for more upsides. The next major resistance could be near $2,665, above which the price could rally toward the $2,700 level.
Looking at Oil, the price struggled near the $78.80 resistance and recently started a sharp downside correction.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 230K, versus 225K previous.
- US Consumer Price Index for Sep 2024 (MoM) – Forecast +0.1%, versus +0.2% previous.
- US Consumer Price Index for Sep 2024 (YoY) – Forecast +2.3%, versus +2.5% previous.
