(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 Price Dips Remain Attractive To The Bulls

Key Highlights

  • Gold price started a downside correction from the $1,810 zone.
  • A major bullish trend line is forming with support near $1,758 on the 4-hours chart.
  • Crude oil price gained bearish momentum and declined below $78.
  • The BoC interest rate decision is scheduled today (forecast 4.25%, versus 3.75% previous).


Gold Price Technical Analysis

Gold price formed a base above the $1,725 level against the US Dollar. The price started a steady increase above the $1,750 and $1,770 levels.

The 4-hours chart of XAU/USD indicates that the price gained pace above the $1,780 resistance zone. The price even moved above the $1,800 level and settled well above the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).

The price traded as high as $1,809. Recently, there was a downside correction below the $1,800 level. The price traded below the 23.6% Fib retracement level of the upward move from the $1,721 swing low to $1,809 high.

On the downside, an initial support is near the $1,755 level. There is also a major bullish trend line forming with support near $1,758 on the same chart.

The next major support is near the $1,730 level. The main support is near $1,720, below which gold price might struggle to stay above the $1,700 zone. On the upside, the price might face sellers near the $1,790 level.

The next major resistance is near the $1,800 level. Any more gains might send the price towards the $1,810 resistance level, above which gold price might revisit the $1,832 resistance.

Looking at crude oil price, there was a sharp decline below the $80 and $78 support levels. The next major support sits near the $72 level.

Economic Releases to Watch Today

  • Euro Zone Gross Domestic Product for Q3 2022 (QoQ) - Forecast 0.2%, versus 0.2% previous.
  • Euro Zone Gross Domestic Product for Q3 2022 (YoY) - Forecast 2.1%, versus 2.1% previous.
  • BoC Interest Rate Decision – Forecast 4.25%, versus 3.75% previous.