Gold price (XAU/USD) prolongs its multi-day-old uptrend and climbs further beyond the $2,700 mark, hitting a fresh record high during the Asian session on Friday. The momentum is sponsored by the expected interest rate cuts by major central banks, which tends to boost demand for the non-yielding yellow metal. Apart from this, escalating tensions in the Middle East and the uncertainty surrounding the US Presidential election turn out to be another factor underpinning the precious metal.
Furthermore, a modest US Dollar (USD) pullback from its highest level since early August is seen benefiting the Gold price and contributing to the positive move. That said, expectations that the Federal Reserve (Fed) will proceed with modest interest rate cuts, bolstered by the upbeat US macro data released on Thursday, should help limit any meaningful USD corrective slide. This, in turn, warrants caution for bullish traders and before positioning for a further appreciating move for the XAU/USD.
From a technical perspective, a sustained move beyond the $2,700 mark comes on the back of this week's breakout above the $2,670-2,672 supply zone and could be seen as a fresh trigger for bullish traders. This, along with the fact that oscillators on the daily chart are holding in positive territory and are still away from being in the overbought zone, suggests that the path of least resistance for the Gold price is to the upside.
On the flip side, any meaningful corrective slide now seems to find decent support near the $2,662-2,660 horizontal zone ahead of the $2,647-2,646 area. A convincing break below the latter might prompt some technical selling and drag the Gold price to the $2,630 intermediate support en route to the $2,600 neighborhood. The latter should now act as a strong base for the XAU/USD and a key pivotal point for short-term traders.
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | -0.07% | -0.09% | -0.16% | -0.01% | -0.10% | -0.02% | 0.01% | |
EUR | 0.07% | 0.02% | -0.10% | 0.06% | -0.05% | 0.07% | 0.09% | |
GBP | 0.09% | -0.02% | -0.06% | 0.07% | -0.03% | 0.08% | 0.05% | |
JPY | 0.16% | 0.10% | 0.06% | 0.16% | 0.05% | 0.12% | 0.13% | |
CAD | 0.00% | -0.06% | -0.07% | -0.16% | -0.10% | -0.01% | -0.03% | |
AUD | 0.10% | 0.05% | 0.03% | -0.05% | 0.10% | 0.09% | 0.07% | |
NZD | 0.02% | -0.07% | -0.08% | -0.12% | 0.00% | -0.09% | -0.02% | |
CHF | -0.01% | -0.09% | -0.05% | -0.13% | 0.03% | -0.07% | 0.02% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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