Following an earlier surge, Spot Gold (XAU/USD) faced a pullback as it approached the crucial resistance level of $2,010. The decline persisted during the American session, indicating possible further downside, albeit gradually. Despite the retreat, the outlook for gold remains bullish. Concurrently, the US Dollar Index (DXY) bounced back from monthly lows, driven by robust US economic data, reaching 104.20 before easing below 104.00. The climb was supported by an increase in US Yields after rising from 4.37% to 4.40%. Notably, recent US data displayed a decrease in Initial and Continuing Claims alongside a more significant-than-expected contraction in October Durable Goods Orders. With the US market closed on Thursday, a decrease in trading volume is anticipated in the upcoming sessions.
On Wednesday, XAU/USD saw a downward movement, touching the middle Bollinger Bands level. Currently hovering slightly above this point, the gold price suggests a potential minor rise targeting the upper band. The Relative Strength Index (RSI) at 55 indicates a period of consolidation for the XAU/USD pair.
Resistance: $1,996, $2,008
Support: $1,988, $1,973
On Wednesday, XAU/USD saw a downward movement, touching the middle Bollinger Bands level. Currently hovering slightly above this point, the gold price suggests a potential minor rise targeting the upper band. The Relative Strength Index (RSI) at 55 indicates a period of consolidation for the XAU/USD pair.
Resistance: $1,996, $2,008
Support: $1,988, $1,973