(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })(); (function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

Gold Could Revisit $1,800, Dollar Corrects Lower

Key Highlights

  • Gold price stayed above the $1,750 support zone.
  • A key bearish trend line is forming with resistance near $1,785 on the 4-hours chart.
  • EUR/USD could gain pace if it settles above 1.1650.
  • GBP/USD spiked above 1.3800 and it is trading above key supports.

 

Gold Price Technical Analysis

This past week, gold saw a bearish reaction from the $1,800 zone against the US Dollar. The price traded below the $1,780 support level, but downsides were limited.

The 4-hours chart of XAU/USD indicates that the price tested the $1,760 support zone. A low was formed near $1,760 before there was a fresh increase. The price was able to climb above the $1,775 resistance and the 200 simple moving average (green, 4-hours).

There was a break above the 50% Fib retracement level of the downward move from the $1,800 swing high to $1,760 low.

On the upside, the price is facing resistance near $1,785. A clear break above $1,785 could send the price toward the $1,800 resistance zone in the near term. The next key resistance is near the $1,820 level.

On the downside, the price might remain supported near $1,770 and the 200 SMA (H4). The main support is near $1,760, below which there is a risk of a break below $1,750.

Looking at EUR/USD, the pair attempted a decent recovery above 1.1620. A clear close above 1.1650 could set the pace for a steady increase.

Economic Releases to Watch Today

  • UK Consumer Price Index for Sep 2021 (YoY) – Forecast +3.2%, versus +3.2% previous.
  • UK Core Consumer Price Index for Sep 2021 (YoY) – Forecast +3.0%, versus +3.1% previous.
  • Euro Zone CPI for Sep 2021 (YoY) - Forecast +3.4%, versus +3.4% previous.
  • Euro Zone CPI for Sep 2021 (MoM) - Forecast +0.5%, versus +0.4% previous.
  • Canadian Consumer Price Index for Sep 2021 (MoM) – Forecast +0.1%, versus +0.2% previous.
  • Canadian Consumer Price Index for Sep 2021 (YoY) – Forecast +4.3%, versus +4.1% previous.