Gold Price Analysis: XAU/USD Hovers Above $1,850 Amid Global Uncertainties and Rate Hike Speculations

Arslan Butt•Wednesday, October 11, 2023•1 min read

GOLD (XAU/USD) experienced minor oscillations on Tuesday, maintaining the substantial rebound it made from a seven-month low of $1,810 last week. As of Wednesday’s Asian session, the metal sustains its position above the $1,850 mark. Investors exhibit caution, opting to await clearer signals regarding the Federal Reserve’s impending interest rate decisions.

The recent US Nonfarm Payrolls data indicated moderate wage growth in September, tempering inflation worries. Coupled with dovish sentiments expressed by several Fed members, these factors hint at a potential shift in the central bank’s approach.

The Israel-Gaza unrest provides some buoyancy to gold, given its safe-haven appeal. However, market sentiment still anticipates a rate hike by year-end, and upbeat global stock performances cap further ascents in gold. All eyes are now on the impending US Producer Price Index data and FOMC minutes, leading to Thursday’s US CPI release.

Gold Technical Overview

From an analytical standpoint, surging past the recent peak, approximately in the $1,865-1,866 zone, could elevate XAU/USD towards the significant $1,885 barrier. This subsequently approaches the critical $1,900 mark, aligned with the 50-day Simple Moving Average (SMA), set to play a decisive role.

A sustained upward movement might indicate a short-term bottom for GOLD , potentially targeting the 200-day SMA, situated around the $1,928-1,930 region.

Conversely, the $1,850 threshold remains as immediate support. Should it falter, the next buffer exists in the $1,835-1,833 band. Breaching these support areas might ignite a sell-off, pushing gold towards the $1,820 zone and possibly revisiting the prior low near $1,810. A decisive dip below this point would confirm a bearish signal, with the 50-day SMA positioned significantly beneath the 200-day SMA, suggesting a more extended downtrend.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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Gold Price Analysis: XAU/USD Hovers Above $1,850 Amid Global Uncertainties and Rate Hike Speculations

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Gold Price Analysis: XAU/USD Hovers Above $1,850 Amid Global Uncertainties and Rate Hike Speculations

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