Aayush Jindal
Key Highlights
- Gold prices corrected a few points from the $2,010 zone.
- It broke a key bullish trend line with support near $1,994 on the 4-hour chart.
- Crude oil prices spiked toward $81.50 before there was a recovery wave.
- The Fed kept interest rates unchanged at 5.25-5.50 per cent.
Gold Price Technical Analysis
Gold is still following a bullish path above $1,965 amid the Israeli–Hamas war. The price extended its increase above the $2,000 resistance zone.
The 4-hour chart of XAU/USD indicates that the price settled above the $1,980 resistance, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
Finally, it traded to a new multi-week high at $2,009 before there was a downside correction. The price declined below a key bullish trend line with support near $1,994 on the same chart. There was a push toward the $1,975 level.
The first major support is near the 23.6% Fib retracement level of the upward move from the $1,810 swing low to the $2,009 high at $1,962. If there is a downside break, the price could test the 100 Simple Moving Average (red, 4 hours).
Any more losses might call for a move toward the 50% Fib retracement level of the upward move from the $1,810 swing low to the $2,009 high at $1,910.
Immediate resistance is near the $2,010 level. The first major resistance is $2,040. An upside break above the $2,040 level could send the price soaring toward the $2,080 resistance. The next major resistance is near the $2,120 level, above which Gold could test $2,200.
Looking at crude oil prices, there was a downside reaction toward the $81.50 level before the bulls appeared and protected more downsides.
Economic Releases to Watch Today
- Germany Manufacturing PMI for Oct 2023 - Forecast 40.7, versus 40.7 previous.
- Euro Zone Manufacturing PMI for Oct 2023 – Forecast 43.0, versus 43.0 previous.
- BoE Interest Rate Decision - Forecast 5.25%, versus 5.25% previous.
