Gold prices closed at $1,793.55, after setting a high of $1,797.35, and a low of $1,781.25. The XAU/USD advanced on Monday, recovering some of its losses of the previous day, on the back of an eased dollar, ahead of the US Federal Reserve meeting.

The US Dollar Index, which measures the value of the greenback against six major currencies, fell to a low of 93.86 on Monday, weighing on the US dollar and pushing gold higher. US Treasury yields fell further on Monday, on the benchmark 10-year note, reaching 1.55%, which added to the weakness of the greenback and pushed gold higher.

Gold Rate Live

Gold was moving higher on Monday, thanks to the declining US dollar, but the macroeconomic data that was released on the day was mostly in favor of the currency. Manufacturing activity in the US improved in October, which showed the strength of the economic recovery, but it looks like investors mostly ignored the macroeconomic release and kept their focus on the upcoming US Federal Reserve meeting. The shifted focus of investors, onto the central bank’s plan to taper its pandemic stimulus measures, kept the US dollar under pressure for the day, and the yellow metal gained as a result.

On the data front, at 18:45 GMT, the Final Manufacturing PMI for October came in, showing a decline to 58.4, against the forecast of 59.2, which weighed on the US dollar and pushed gold higher. At 19:00 GMT, the ISM Manufacturing PMI was released. It surged to 60.8, against the projected 60.4, and supported the US dollar, limiting the gains in the precious metal. Construction spending dropped by 0.6%, against the predicted 0.6%, and weighed on the US dollar, which capitulated the gains in the gold prices. The ISM Manufacturing prices also increased, coming in at 85.7, against the projected 82.5, which bolstered the US dollar and limited the upward momentum of gold for the day.

Meanwhile, on Monday, Johns Hopkins University reported that the global tally of coronavirus infections has climbed above 246.8 million, and the death toll has edged above 5 million. The US continued to lead the world statistics, with a total of 45.9 million cases and a whopping 745,836 deaths. This also kept the US under pressure on Monday and supported the upward trend in gold prices.

Gold double top resistance at $1,791 – What’s Next?

In the 4-hour timeframe, the precious metal, gold, crossed over at the $1,789 resistance level, and it is now facing resistance at 1,795. It has started closing candles below this level, therefore, the chances of a bearish correction remain strong. Gold is now likely to gain support at the 1,790 level, which is being extended by an upward channel. The closing of candles above the 1,790 level supports a buying trend.

On the other hand, immediate support for gold remains at 1,787, and violation of this level would expose it to the 1,779 level. On the higher side, the resistance remains at levels of 1,795 and 1,805. The RSI and Stochastic support a buying trend today. We need to keep an eye on the $1,789 level – a break below this might offer us a selling trade and vice versa. Good luck!