Daily Market Analysis and Forex News
XAUUSD rebounds from 1980
Gold bulls have managed to reverse the 3-day downward streak on Thursday and are now trying to push the price towards $1990 round number after the Fed’s decision (on Wed.) to leave the interest rates intact.
The weakening of the greenback along with a decline in treasury yields made investors once again wonder if this is really the end of interest rates hiking spree.
As of now, the markets expect 19.5% chance of an interest rate hike in December.
An ongoing geopolitical conflict between Israel and Palestine, with a risk to become a much wider regional conflict, continue to push investors towards XAUUSD as they seek for “safe-haven” like assets.
During the following week, Investors expect the 74.5 chance of XAUUSD to fluctuate in between 1949.51 – 2029.47
Gold’s proximity to $2000 psychological level underlines a potential for XAUUSD bulls to try and retake it again in the foreseeable future.
The markets will now pay significant attention towards today’s nonfarm payrolls (NFP) reading.
If today’s NFP shows a weakening jobs market, which points to the Fed rate hikes taking a toll on hiring, that may be the catalyst for a return of $2k gold.
On the technical side:
- The 21-period SMA has punched above the 100-period SMA (at 1943.6) this week, hinting on a potential bullish trend
- $1990 may prove to be a strong immediate resistance level followed by a $2000 psychological threshold XAUUSD bulls may aim at in the near future
- $1980 round number may provide an immediate support for the XAUUSD bulls