The XAUUSD currency pair experienced a decline to around the $1,890 range, which is the lowest it has been since March 13.
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- XAU/USD dropped towards the $1,890 area, its lowest since March 13.
The pair currently trades last at 1889.39.
The previous day high was 1907.27 while the previous day low was 1891.68. The daily 38.2% Fib levels comes at 1897.64, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1901.31, expected to provide resistance.
On Thursday, the XAU/USD gold spot price traded below $1,900 and faced renewed selling pressure amid stronger USD and higher US treasury bond yields.
In line with that, on Wednesday, the Federal Open Market Committee (FOMC) minutes revealed that members were open to continuing hiking due to upside risks related to inflation, pointing out that the labour market remains extremely tight, which boosts hawkish bets on the Federal Reserve (Fed).
In that sense, the 10-year yield, which could be seen as the opportunity cost of holding gold, rose to a multi-month high of 4.28%, while the 2 and 5-year bond rates rose more than 1% to 4.93% and 4.41%. This rise may be attributed to the odds of a hike, as per the CME FedWatch tool, in November of the Fed of 25 basis points, rising near 40%.
Analysing the daily chart, XAU/USD presents a bearish outlook for the short term. Both Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain in negative territory, with the RSI positioned below its midline and showcasing a southward slope. The MACD also displays red bars, further supporting the intensifying bearish momentum. Furthermore, the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), suggesting that the bears are firmly in control of the bigger picture.
Support levels: $1,870, $1,850, $1,830
Resistance levels: $1,900, $1,906 (200-day SMA), $1,930.
Technical Levels: Supports and Resistances
XAUUSD currently trading at 1889.36 at the time of writing. Pair opened at 1891.76 and is trading with a change of -0.13 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1889.36 |
| 1 | Today Daily Change | -2.40 |
| 2 | Today Daily Change % | -0.13 |
| 3 | Today daily open | 1891.76 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1937.62, 50 SMA 1938.09, 100 SMA @ 1964.32 and 200 SMA @ 1905.12.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1937.62 |
| 1 | Daily SMA50 | 1938.09 |
| 2 | Daily SMA100 | 1964.32 |
| 3 | Daily SMA200 | 1905.12 |
The previous day high was 1907.27 while the previous day low was 1891.68. The daily 38.2% Fib levels comes at 1897.64, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1901.31, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1886.54, 1881.31, 1870.95
- Pivot resistance is noted at 1902.13, 1912.49, 1917.72
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1907.27 |
| Previous Daily Low | 1891.68 |
| Previous Weekly High | 1946.82 |
| Previous Weekly Low | 1910.92 |
| Previous Monthly High | 1987.54 |
| Previous Monthly Low | 1902.77 |
| Daily Fibonacci 38.2% | 1897.64 |
| Daily Fibonacci 61.8% | 1901.31 |
| Daily Pivot Point S1 | 1886.54 |
| Daily Pivot Point S2 | 1881.31 |
| Daily Pivot Point S3 | 1870.95 |
| Daily Pivot Point R1 | 1902.13 |
| Daily Pivot Point R2 | 1912.49 |
| Daily Pivot Point R3 | 1917.72 |
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