• Gold price has stretched its rally above $1,960.00 amid a risk-on mood.
  • The interest rate decision of skipping interest rate hikes by the Fed has provided relief to the market participants.
  • Gold price has delivered a breakout of the Falling Channel pattern, which supports a bullish reversal.

Gold price (XAU/USD) has stretched its rally to near $1,964.00 in the European session. The precious metal is expected to deliver more gains as the USD Index (DXY) looks vulnerable above the crucial support of 102.00.

S&P500 futures have recovered entire losses posted in Asia and has shifted into positive territory as the risk appetite theme is getting traction. The US Dollar Index (DXY) is consolidating in a narrow range above 102.00. US Treasury yields are also choppy amid a lack of potential triggers ahead.

The interest rate decision of skipping interest rate hikes by the Federal Reserve (Fed) has provided relief to the market participants. The neutral decision of Fed chair Jerome Powell was followed by a hawkish dot plot in which it is confirmed that two more interest rate hikes will be announced. However, investors are hoping that current United States economic prospects are turning vulnerable as labor market conditions are further easing now.

On Thursday, the US Department of Labor reported higher-than-expected jobless claims straight for four weeks. It seems that higher interest rates by the Fed and tight credit conditions by US regional banks have put a lid on the route of credit disbursals to firms, which has forced them to underutilize their total capacity.

Gold technical analysis

Gold price has delivered a breakout of the Falling Channel chart pattern formed on a two-hour scale. A breakout of the aforementioned chart pattern supports a bullish reversal. The precious metal is approaching the horizontal resistance plotted from May 16 low at $1,985.53.

Gold price has climbed above the 200-period Exponential Moving Average (EMA) at $1,960.00, which indicates that the long-term trend has turned bullish.

The Relative Strength Index (RSI) (14) is looking to shift into the bullish range of 60.00-80.00. An occurrence of the same will activate the upside momentum.

Gold two-hour chart


Today last price1964.99
Today Daily Change6.87
Today Daily Change %0.35
Today daily open1958.12
Daily SMA201957.79
Daily SMA501986.32
Daily SMA1001941.79
Daily SMA2001846.39
Previous Daily High1960.31
Previous Daily Low1924.85
Previous Weekly High1973.15
Previous Weekly Low1938.15
Previous Monthly High2079.76
Previous Monthly Low1932.12
Daily Fibonacci 38.2%1946.76
Daily Fibonacci 61.8%1938.4
Daily Pivot Point S11935.21
Daily Pivot Point S21912.3
Daily Pivot Point S31899.75
Daily Pivot Point R11970.67
Daily Pivot Point R21983.22
Daily Pivot Point R32006.13