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Gold Breaks Below $1,810 Support – A Daily Technical Outlook! – FX Leaders


  • The rapid spread of the Omicron variant has caused an increase in the number of cases around the globe, supporting the safe-haven, gold
  • The main reason behind the declining prices of precious metals could be the strength of the US dollar for the session
  • Gold is trading at 1,806 with a slightly bearish bias, and facing strong resistance at 1,818. A bullish crossover above 1,819 would expose the metal to 1,832
Gold prices closed at $1,807.00, after setting a high of $1,821.65, and a low of $1,805.60. During the early trading hours on Tuesday, gold rallied to its highest level since November 22, but it failed to remain there for long, dropping in the late trading hours, and extending its losses for the second consecutive session.
The main reason behind the declining prices of precious metals could be the strength of the US dollar for the session. The US Dollar Index, which measures the greenback’s value against a basket of six major currencies, rose to 96.23 and recovered its previous session’s losses. The US Treasury yield on the benchmark 10-year note also rose on Tuesday, moving by around 1.48%, which strengthened the US dollar. The strong greenback added to the heavy selling pressure surrounding the precious metal.At 19:00 GMT, the HPI from October came in, showing a rise to 1.1% against the forecast of 0.9%, which supported the US dollar. The S&P/CS Composite-20 HPI fell to 18.4%, versus the expected 18.6%, weighing on the US dollar. At 20:00 GMT, the Richmond Manufacturing Index surged to 16 against the predicted 11, and supporting the US dollar. Most of the data came from the US, which pushed the dollar higher, putting added selling pressure on the precious metal for the day.

Despite the strong greenback, gold prices remained above the key level of $1,800 per ounce amid the prevailing concerns over rising inflation. Some investors see gold as an inflation hedge, but the metal’s sensitivity to rising US interest rates is keeping it under pressure, as they raise the cost of holding bullion.

Meanwhile, the rapid spread of the Omicron variant has increased the number of cases around the globe, supporting the safe-haven, gold. Coronavirus infections have reached 1.44 million; a study suggested that Omicron infects 70 times faster than previous coronavirus strains. However, the resulting  illness appears to be less severe, especially for people who have been vaccinated and received a booster shot. This brought some optimism to the market and limited the losses in gold for the day.

Gold - XAU/USD Chart

Daily Technical Levels

Support         Resistance
1,801.19         1,817.24
1,795.37         1,827.47
1,785.14         1,833.29
Pivot Point:  1,811.42

Gold – A Technical Outlook; Upward Trendline Breakout at $1810

Gold is trading at 1,806, with a slightly bearish bias, and facing strong resistance at 1,818. A bullish crossover above 1,819 would expose the metal to 1,832. The market is exhibiting a thin trading volume and volatility, as most traders are on holiday. On the lower side, support remains at 1,801, and a break below 1,801 could lead the XAU/USD to levels of 1,792 and 1,779. Good luck!





Read More : Gold Breaks Below $1,810 Support – A Daily Technical Outlook! – FX Leaders

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