Gold slips to $1,791 – Weaker US Current Account in Play – FX Leaders
- The deficit in the third quarter was 3.7 percent of current dollar GDP, which was up from 3.5 percent in the second quarter
- On the 2-hourly timeframe, the XAU/USD is trading with a slightly bearish bias, facing immediate resistance at the 1,791 level
- The dollar index (DXY) recovered some of its overnight losses, but traded marginally lower, making bullion more affordable for foreign traders
Weaker US current account underpins XAU/USD
Gold (XAU/USD) – A technical outlook; brace for a sell trade
On the 2-hourly timeframe, the XAU/USD is trading with a slightly bearish bias, facing immediate resistance at the 1,791 level. The closing of candles below this level supports a selling bias in gold. The yellow metal is on the verge of completing a 50% Fibonacci correction at 1,784. At the same time, the resistance continues to hold at around 1,791 (marking a 38.2% Fibo). The RSI and Stoch RSI suggest a selling bias; therefore, let’s consider looking for a sell trade under 1,791 and vice versa. Good luck!