Subscribe to RSS

Gold Analysis: Consolidating before next leg lower, eyes August lows

Gold prices in terms of the US dollar (XAU/USD) almost retraced the entire rally seen in the first half of Oct on Wednesday, falling sharply to fresh monthly lows at 1106.41. The renewed sell-off in the yellow metal was triggered yesterday, after it failed to resist the Fib 78.6% levels at 1123.30 (retracement of Oct 2-15 rise). Fundamentally, what led to the $ 15 sharp drop in the bullion can be explained by the Fed Chair Yellen’s hawkish comments while testifying in the last US session. Yellen repeated that the committee sees Dec Fed rate hike possibility alive, while adding that no decision have been made on the same. Moreover, upbeat US ISM services and ADP report also added to bullish sentiment in the USD, hammering gold to just ahead of Oct lows.

In today’s trade so far, the bullion attempts a tepid bounce from multi-week lows and hovers around 1108.50 levels, with the upside capped near Sept 30 Low at 1111.60. The prices are expected to remain pressured as the Fed officers are now optimistic on the US economic outlook and see Dec meeting as a ‘live event’. Moreover, the odds of a Dec rate rise as indicated by Fed funds rate futures contract on CME have risen to 58%, from about 45% seen after the latest FOMC meeting, the CME Group’s FedWatch tool showed on Wednesday. Later in the day, Fed speaks and the US weekly unemployment claims will be released which may further talk up Dec lift-off and further pressure gold towards 1100 barrier. While the main decisive factor, which may confirm Dec rate hike, the non-farm payrolls data, is due to be reported on Friday.

Technicals – A break below $ 1100, targets $ 1080

On daily charts, the pair has formed a small doji and languishes within a shouting distance of the fresh monthly lows reached yesterday. The daily RSI at 31 points slightly lower supporting further southward moves. Hence, a breach of 1106-1104 levels (Nov 4 & Oct 2 Lows), the floors open for a test of 1100 – psychological barrier. Selling pressure will intensify below the last, taking the prices further towards 1080, the confluence of August lows and Fib 127.20% (of the same rally). In case the prices manage to hold 1100 threshold, a minor recovery could be attempted towards 1115-18 levels above daily highs. However, the upside seems limited as the ongoing Dec Fed talks continue to dent gold, which a non-interest bearing asset.

XAUUSD

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

100% Bonus on your $100 Minimum Deposit – AvaTrade

100% Bonus on your $100 Minimum Deposit – AvaTrade(0)

Up to 100% Bonus on your $100 Minimum Deposit. Start forex trading today and in honour of our Irish roots we’ll give you a St. Patricks Day special bonus of up to 100% Link:  100% Special Bonus to Your First Deposit Available to: All new account Ending Date: 31 December 2017 Bonus offer: 100% New

Pro Forex Contest for Demo Trading Accounts – FBS

Pro Forex Contest for Demo Trading Accounts – FBS(0)

FBS Pro Forex Contest for Demo Trading Account Total Prize fund $1000. It is necessary to open a forex demo contest account and finish with the biggest balance. Link:  Event for Malaysian and Thailand clients Link:  $88.8 Forex No Deposit Bonus Link:  $123 Forex No Deposit Bonus Link:  100% Forex Deposit Bonus Promotion Contest conditions

100 USD Wanga Bonus Promotion – Fort Financial

100 USD Wanga Bonus Promotion – Fort Financial(0)

100 USD Free Wanga Bonus Promotion to All New and Existing Traders. You can withdraw your Free Wanga Bonus Amount or use it for further forex trading on your account Link:  100 USD Wanga Bonus Promotion Link:  $5 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit Link:  15% Support Margin

$50 Forex No Deposit Free Power Bonus – GIC Market

$50 Forex No Deposit Free Power Bonus – GIC Market(0)

$50 Forex No Deposit Free Power Bonus Promotion to All New Traders. $50 Forex No Deposit Free Bonus is one of the unique promotions that offer new traders money to open a live trading account. Link: $50 Forex No Deposit Power Bonus Available to: New and Existing Traders. Ending Date: 31 December 2017 Bonus Offer:

$3500 Free Forex No Deposit Trading Bonus – InstaForex

$3500 Free Forex No Deposit Trading Bonus – InstaForex(0)

Get $3500 Free Forex No Deposit Trading Bonus Start Trading Forex and CFD Without Deposit and Without Risks. The new $3500 No Deposit Forex Bonus from InstaForex is an exciting opportunity to start Forex Trade. Link:  $3500 Free No Deposit Bonus Link:  Get 250% Bonus for First Deposit Link:  100% Deposit Bonus Campaign Available to: 

Up to $1000 Welcome Bonus of Every Deposit – FortFS

Up to $1000 Welcome Bonus of Every Deposit – FortFS(0)

Up to 50% Bonus of Every Deposit to All New and Existing Traders. You Deposited $1000 on your account, chose a 50% bonus and got 500 extra dollars to the initial deposit amount. Link:  $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: $5 Forex No Deposit Welcome Bonus

30 USD Forex No Deposit Bonus Promotion – Tickmill

30 USD Forex No Deposit Bonus Promotion – Tickmill(0)

$30 No Deposit Forex Welcome Bonus Campaign to All new traders. $30 Free Forex Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  Weekly Demo Race Trading Contest Link:  $30 Free Welcome Bonus Campaign Link:  Forex Monthly Live Trading Contest Available to: All new traders

$25 Deposit and earn $5000 Cashback Bonus – UFX

$25 Deposit and earn $5000 Cashback Bonus – UFX(0)

100% Forex Real Money Cash-back Bonus Promotion to all new and existing clients. Join and gain exclusive access to the ONLY online trading 100% Forex Cashback rewards bonus program Link:  $5000 BitCoin Rewards Bonus Promo Link:  $50 Free and Trade in Three Steps Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack

300% Deposit Bonus Plus Free Forex Signals – MarketsYes

300% Deposit Bonus Plus Free Forex Signals – MarketsYes(0)

300% Tradable Bonus Promotion up to $3000. MarketsYes is offering all prospective clients’ deposit for up to 3000 USD/EUR/GBP a 300% Forex Tradable Bonus. Link:  300% Tradable Bonus Promotion Available to: All new traders Ending Date: 31 December 2018 Bonus Offer: 300% Tradable Bonus Promotion up to $3000 to all new traders SETTLEMENT COMPANY CORPORATION

Receive $100 Free on your Trading Account – FxFinance

Receive $100 Free on your Trading Account – FxFinance(0)

Receive $100 Free on your FxFinance Live Trading Account. $100 Free offer is valid for an unlimited period of time, for all those who have made accruals for the shares before August 31, 2017. Link:  Receive $100 Free on your Account Available to: All new trading account Ending Date: 31 August 2017 Terms of action:

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories