Gold on the Rise – Quick update on XAU/USD Trading Signal

In the Asian session, the gold price has encountered selling pressure while seeking to hold above the immediate hurdle of $1,650.00.

Skerdian Meta•Tuesday, October 18, 2022•1 min read

Gold on the Rise - Quick update on XAU/USD Trading Signal

In the Asian session, the gold price has encountered selling pressure while seeking to hold above the immediate hurdle of $1,650.00. The precious metal’s retreat move, which dropped to approximately $1,646.83 in the late New York session, has ended as the US dollar index (DXY) has recovered.

After being in the grasp of bears, the DXY has picked up bids of around 112.00. However, the risk-on attitude remains. S&P500 futures are holding overnight gains after a positive Monday. Furthermore, 10-year US Treasury rates fluctuate below the key 4% level. Going forward, the yellow metal GOLD may resume its decline toward $1,640.00 as expectations of aggressive Federal Reserve (Fed) monetary policy remain strong.

XAU/USD

According to the CME FedWatch tool, the chances of interest rates rising by 75 basis points for the fourth time in a row are 98.9%. Meanwhile, recession fears have become stronger because JP Morgan discusses financial instruments. JP Morgan strategists, according to Reuters, are reducing their delivery longs in equities and trimming their underweight position in bonds because of the heightened possibility that central banks may make a hawkish policy mistake.

Gold (XAU/USD) Technical Outlook

Gold’s price bounced downwards after testing the bearish channel’s resistance on the chart, which keeps our bearish overview valid and active, supported by the EMA50, which presses negatively on the price, waiting to visit the $1,630 and $1,615 levels, which represent our next big targets.

As a result, we expect more losses today, with a break of $1,660, ending the projected negative scenario and causing the price to climb. Today’s trading range is likely between $1,625 support and $1,665 resistance.

Today’s projected trend: Bullish

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.