- Gold continues to move sideways, limited by $1900.
- Metals spike and pulled back amid an improvement in dollar’s momentum.
Gold climbed after the beginning of the American session to $1900, reaching the highest level in two days but it then turned to the downside falling to $1882, a fresh daily low. As of writing, the metal trades flat for the day at $1885.
The move to the downside took place amid a modest recovery of the US dollar across the board. The DXY printed a fresh high at 93.80. At the same time, equity prices in Wall Street are holding onto daily gains. The Dow Jones gains 0.40% and the Nasdaq 0.35%.
The day after the FOCM minutes and the US Vice presidential debate market remains quiet. Economic data from the US showed a decline in initial jobless claims but not as much as expected. The expectations about more fiscal stimulus continue to support market sentiment.
Levels to watch
Siler also pulled back from two day highs. XAG/USD peaked at 24.20 and pulled back under 24.00. Both metals still hold a slightly bearish bias as it remains unable to break recent tops, suggesting they could continue to consolidate around the current range, still away from September lows.
XAU/USD is facing a critical resistance around the $1910/20, and a daily close above could remove the current bearish bias. On the flip side, the immediate support stands at $1870; below a test of the September low sat $1845 seems likely.