The price of gold at $1,921.30 has bounced back slightly from its previous decline around $1,920 due to increased demand for the USD.
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- Gold price recovers some lost ground around $1,920 amid the USD demand.
The pair currently trades last at 1921.30.
The previous day high was 1932.04 while the previous day low was 1913.95. The daily 38.2% Fib levels comes at 1920.86, expected to provide support. Similarly, the daily 61.8% fib level is at 1925.13, expected to provide resistance.
Gold price (XAU/USD) recovers its recent losses after retreating to a weekly low of $1,913 during the early Asian session on Friday. As of writing, XAU/USD was up 0.08% on the day at $1,921.62.
In a press conference on Wednesday, Federal Reserve (Fed) Chairman Jerome Powell reaffirmed the Fed’s commitment to achieving 2% inflation. Powel added that the Fed is prepared to raise interest rates if necessary.
According to the Fed’s most recent quarterly predictions, the benchmark overnight interest rate may be raised one more time this year to a peak range of 5.50% to 5.75%, and rates may be substantially tighter through 2024 than previously anticipated.
In addition, the Fed revised its Summary of Projections (SEP), indicating that Fed officials anticipate that interest rates will reach 5.1% by the end of 2024 (up from 4.6% previously). It’s worth noting that rising interest rates raise the opportunity cost of investing in non-yielding assets, implying a negative outlook for precious metals.
About the data, the US weekly Initial Jobless Claims dropping to 201K, the lowest level since January. Additionally, the Philly Fed dropped to -13.5 in September from 12.0 in the previous reading, worse-than-expected of -0.7. Existing Home Sales fell to 4.04M MoM in August from the previous reading of 4.07M.
Looking ahead, gold traders will keep an eye on the preliminary US S&P Global/CIPS PMI data for September due later on Friday. These figures could provide a clear direction for gold price.
Technical Levels: Supports and Resistances
XAUUSD currently trading at 1921.45 at the time of writing. Pair opened at 1920.08 and is trading with a change of 0.07 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1921.45 |
| 1 | Today Daily Change | 1.37 |
| 2 | Today Daily Change % | 0.07 |
| 3 | Today daily open | 1920.08 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1925.47, 50 SMA 1930.63, 100 SMA @ 1943.18 and 200 SMA @ 1924.83.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1925.47 |
| 1 | Daily SMA50 | 1930.63 |
| 2 | Daily SMA100 | 1943.18 |
| 3 | Daily SMA200 | 1924.83 |
The previous day high was 1932.04 while the previous day low was 1913.95. The daily 38.2% Fib levels comes at 1920.86, expected to provide support. Similarly, the daily 61.8% fib level is at 1925.13, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1912.01, 1903.93, 1893.92
- Pivot resistance is noted at 1930.1, 1940.11, 1948.19
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1932.04 |
| Previous Daily Low | 1913.95 |
| Previous Weekly High | 1930.77 |
| Previous Weekly Low | 1901.07 |
| Previous Monthly High | 1966.08 |
| Previous Monthly Low | 1884.85 |
| Daily Fibonacci 38.2% | 1920.86 |
| Daily Fibonacci 61.8% | 1925.13 |
| Daily Pivot Point S1 | 1912.01 |
| Daily Pivot Point S2 | 1903.93 |
| Daily Pivot Point S3 | 1893.92 |
| Daily Pivot Point R1 | 1930.10 |
| Daily Pivot Point R2 | 1940.11 |
| Daily Pivot Point R3 | 1948.19 |
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