Gold Technical Analysis

XAUUSD Point & Figure Chart

Gold continues to track the fortunes of US Bond Yields, having plunged to the depths of 1760 last week as 10 year yields rose above 1.60%.However, the dovish stance of the FOMC is the dominant factor driving the Gold price. Despite stating tapering, markets now think that The Fed are in no hurry to hike rates after completing their tapering mid 2022.

With this sentiment it is hardly surprising to see the yellow metal trading above 1800, attempting to rally towards 1830/1835 last seen in early September.

Later this week the US will release its inflation data for October, let’s see if the market still feels inclined to believe Mr Powell that inflation is just transitory, if the US posts a number close to 5.7% as expected. Gold may not be able to hold onto its recent gains.

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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