Gold’s Choppy Session Continues – Brace for a Breakout
In the Tokyo session, the gold price has picked up offers as it attempts to pass the crucial $1,670.00 level.
Skerdian Meta•Tuesday, October 25, 2022•1 min read
In the Tokyo session, the
gold price has picked up offers as it attempts to pass the crucial $1,670.00 level. The precious metal has been under significant selling pressure as the US dollar index (DXY) has become highly volatile amid speculation over the Bank of Japan’s (BOJ) involvement in
currency markets to bolster the Japanese yen.
The US dollar index (DXY) has been oscillating between 111.47 and 112.27. As Japan’s senior currency diplomat Masato Kanda has denied commenting on revealing any intervention plans, it is expected to stay volatile until clarification on the BOJ’s action is provided.
Meanwhile, S&P500 futures have continued to rise following Friday’s strong attitude in early Asia. Simultaneously, despite a resurgence in betting on aggressive Federal Reserve (Fed) policy, returns on US government bonds have fallen further. The 10-year US Treasury yield has fallen to 4.21%. At the same time, the probability of the Fed raising interest rates by 75 basis points (bps) is more than 94%, according to the CME FedWatch tool at the time of publication.
In the future, the US S&P PMI statistics will be critical. According to market expectations, the Manufacturing PMI will fall to 51.2 from 52.0 previously published, while the Services PMI will fall to 49.2 from 49.3 previously recorded.
Gold Technical Outlook
Since yesterday, the
gold price has been hovering around the EMA50. As long as the price is below $1,660, our bearish outlook will remain valid for the foreseeable future. We are waiting for a negative motivation to push the price toward our major projected goal of $1,615.
On the other hand, we should highlight that a break of $1,660 will cause the price to make additional intraday advances, primarily targeting the $1,686.40 range. Today’s trading range is likely to be between $1,625 support and $1,665 resistance.
Today’s projected trend: Bullish
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.
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