Gold is back above $1,700, which is where it was in the middle of September, up 5% on the week.
A drop in Treasury yields and a weaker dollar have aided gold's rise as the market speculates on the end of Fed rate hikes.
From their 4% peak in September, US 10-year Treasury yields (
US10Y) have decreased by almost 40 basis points in the last few session, and real yields (
DFII10) also dropped.
Simultaneously, the DXY index decreased from 114.1 on September 27 to 110.6. Overall, gold confirmed its inverse relationship with both the USD and real yields.
https://www.tradingview.com/x/SbWcU98g/
What does gold's chart analysis show?
Gold prices are currently testing a multi-resistance zone between $1,710 and $1,720, defined by the bearish trendline from March's 2022 highs, the 50-day moving average, and the 23.6% Fibonacci retracement levels of the 2022 high-low range.
Previously, gold prices encountered resistance at the 2022 bearish trendline and retreated in mid-August.
The MACD is forming a bullish crossover, and the RSI is moving above 50 for the first time since mid-August, according to the oscillator analysis, which supports a short-term upward trend.
If this multi-resistance region is broken, it could signal an extension of the bullish wave towards $1,788 (38.2% Fibonacci) and $1,800-1.810 (August highs) as potential short-term targets. If prices retreated from the resistance, $1,680 serves as the first support for placing stop.
Idea written by Piero Cingari, forex and commodity analyst at Capital.com
A drop in Treasury yields and a weaker dollar have aided gold's rise as the market speculates on the end of Fed rate hikes.
From their 4% peak in September, US 10-year Treasury yields (
Simultaneously, the DXY index decreased from 114.1 on September 27 to 110.6. Overall, gold confirmed its inverse relationship with both the USD and real yields.
https://www.tradingview.com/x/SbWcU98g/
What does gold's chart analysis show?
Gold prices are currently testing a multi-resistance zone between $1,710 and $1,720, defined by the bearish trendline from March's 2022 highs, the 50-day moving average, and the 23.6% Fibonacci retracement levels of the 2022 high-low range.
Previously, gold prices encountered resistance at the 2022 bearish trendline and retreated in mid-August.
The MACD is forming a bullish crossover, and the RSI is moving above 50 for the first time since mid-August, according to the oscillator analysis, which supports a short-term upward trend.
If this multi-resistance region is broken, it could signal an extension of the bullish wave towards $1,788 (38.2% Fibonacci) and $1,800-1.810 (August highs) as potential short-term targets. If prices retreated from the resistance, $1,680 serves as the first support for placing stop.
Idea written by Piero Cingari, forex and commodity analyst at Capital.com
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