Gold price (XAU/USD) reverses an intraday dip to the $2,738 area and climbs to a fresh all-time peak heading into the European session on Wednesday. Against the backdrop of persistent geopolitical risks stemming from the ongoing conflicts in the Middle East, the US political uncertainty continues to act as a tailwind for the safe-haven precious metal. Apart from this, the expected interest rate cuts by major central banks turn out to be another factor benefiting the non-yielding yellow metal.
Meanwhile, the US Dollar (USD) prolongs its upward trajectory witnessed since the beginning of this month and climbs to its highest level since early August amid bets for a less aggressive policy easing by the Federal Reserve (Fed). Furthermore, the prospects for smaller Fed rate cuts remain supportive of elevated US Treasury bond yields. This, in turn, might hold back traders from placing fresh bullish bets around the Gold price amid slightly overbought conditions on the daily chart.
From a technical perspective, the XAU/USD faced rejection near the $2,750 area, which is followed by the top boundary of a two-week-old ascending channel, around the $2,767 region. The said barrier should act as a key pivotal point, which if cleared decisively should pave the way for an extension of the recent well-established uptrend. The subsequent move up might then lift the Gold price to the $2,800 round-figure mark.
On the flip side, any subsequent slide is likely to find decent support near the $2,725 area, representing the lower end of the aforementioned trend channel. A convincing break below the latter might prompt some technical selling and drag the Gold price to the $2,700 mark en route to the $2,680-2,675 support. The latter is near the 100-period Simple Moving Average (SMA) on the 4-hour charts and should act as a strong base.
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.06% | 0.04% | 0.75% | 0.04% | 0.23% | 0.16% | 0.19% | |
EUR | -0.06% | 0.00% | 0.71% | 0.00% | 0.20% | 0.12% | 0.15% | |
GBP | -0.04% | -0.00% | 0.71% | -0.01% | 0.20% | 0.12% | 0.19% | |
JPY | -0.75% | -0.71% | -0.71% | -0.72% | -0.53% | -0.59% | -0.52% | |
CAD | -0.04% | -0.00% | 0.01% | 0.72% | 0.20% | 0.16% | 0.21% | |
AUD | -0.23% | -0.20% | -0.20% | 0.53% | -0.20% | -0.05% | -0.02% | |
NZD | -0.16% | -0.12% | -0.12% | 0.59% | -0.16% | 0.05% | 0.06% | |
CHF | -0.19% | -0.15% | -0.19% | 0.52% | -0.21% | 0.02% | -0.06% |
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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