Gold price (XAU/USD) meets with some supply on Friday and erodes a part of the previous day's gains amid the emergence of US Dollar (USD) dip-buying, bolstered by expectations for a less aggressive policy easing by the Federal Reserve (Fed). Apart from this, a generally positive tone around the equity markets is seen as another factor undermining demand for the safe-haven precious metal.
That said, the US political uncertainty ahead of the November 5 presidential election, persistent geopolitical risks stemming from the ongoing conflicts in the Middle East and a further decline in the US Treasury bond yields offer support to the Gold price. This, in turn, warrants some caution before confirming that the XAU/USD has topped out and positioning for any meaningful corrective decline.
From a technical perspective, the recent price action over the past week or so constitutes the formation of a bearish head and shoulders pattern on short-term charts. The neckline support of the said pattern is pegged near the $2,705 region, which should now act as an immediate strong support. Some follow-through selling, leading to a subsequent fall below the $2,700 mark, should pave the way for deeper losses and drag the Gold price further towards the $2,675 support. The downfall could extend further towards the bearish pattern target near the $2,660 area.
On the flip side, the $2,640-2,645 region now seems to have emerged as an immediate strong barrier. Meanwhile, a sustained strength beyond will negate the head-and-shoulders pattern and allow the Gold price to aim towards challenging the all-time peak, around the $2,658-2,659 area touched earlier this week. The subsequent move up could lift the XAU/USD towards the $2,770 zone, representing a nearly four-month-old ascending trend-line resistance, en route to the $2,800 round-figure mark.
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.09% | 0.10% | 0.12% | -0.02% | 0.24% | 0.29% | 0.06% | |
EUR | -0.09% | 0.03% | 0.03% | -0.11% | 0.14% | 0.20% | -0.04% | |
GBP | -0.10% | -0.03% | 0.00% | -0.14% | 0.11% | 0.18% | -0.10% | |
JPY | -0.12% | -0.03% | 0.00% | -0.14% | 0.12% | 0.17% | -0.08% | |
CAD | 0.02% | 0.11% | 0.14% | 0.14% | 0.25% | 0.31% | 0.03% | |
AUD | -0.24% | -0.14% | -0.11% | -0.12% | -0.25% | 0.07% | -0.21% | |
NZD | -0.29% | -0.20% | -0.18% | -0.17% | -0.31% | -0.07% | -0.28% | |
CHF | -0.06% | 0.04% | 0.10% | 0.08% | -0.03% | 0.21% | 0.28% |
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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