Gold Regains Support Near $1,745: Quick Buy Signal Update
Skerdian Meta • 1 min read
In the Asian session, the gold price rose above the immediate resistance level of $1,750.00. The gold XAU/USD price has recovered due to a responsive buying action near the important support level of $1,740.00. Because the risk aversion theme is losing traction, the US Dollar Index (DXY) has fallen dramatically below 106.30.
After a sell-off on Monday, S&P500 futures have recovered, signaling that investors’ appetite for risk has returned. Meanwhile, 10-year US Treasury yields are hovering around 3.70%.
Chinese marshals have prevented the general population from gathering on the highways to hinder protests against the administration’s rollback of COVID-19 lockdown measures. However, the procedure is just temporary since people are frustrated and angry.
On the domestic front, investors anticipate the publication of quarterly gross domestic product (GDP) figures on Wednesday. The pace of growth is predicted to remain constant at 2.6%. Policymakers at the Federal Reserve (Fed) are bracing for a slowing of the growth rate, which will result in a slowing of inflation. This will help the Fed develop a strategy for the December monetary policy meeting.
Gold Technical Outlook
The gold price opens slightly higher today at $1,751, with the EMA50 providing consistent resistance at $1,755. A break of this level may indicate and confirm the extension of the bullish wave to $1,760 or $1,786.50.
On the downside, if gold breaks below a major support level of $1,746.40, the bearish trend scenario will remain valid. Closing below this level can trigger selling until $1,735 or $1,720.
Today’s trading range is likely between $1,735 and $1,764.
Today’s projected trend: bullish