Technical Analysis

GOLD Analysis – November 02, 2021

By LonghornFX Technical Analysis
Nov 2, 20213 min

Gold’s Daily Price Analysis

Gold prices ended the day at $1793.55, having reached a high of $1797.35 and a low of $1781.25. Gold rose on Monday, recouping some of the previous day's losses on the back of a weaker dollar ahead of the Federal Reserve meeting in the United States.

The US Dollar Index, which calculates the greenback's strength against a basket of six major currencies, dropped on Monday to a low of 93.86, weighing on the greenback and pushing gold higher. The benchmark 10-year US Treasury note yield fell further on Monday, reaching 1.55 percent, adding to the US dollar's weakness and pushing gold higher.

Gold was rising on Monday, despite the falling US dollar, but the currency generally favored the day's macroeconomic data. Manufacturing activity in the United States strengthened in October, indicating the strength of the economic recovery, but it appeared that investors largely ignored the macroeconomic report instead of focusing on the next US Federal Reserve meeting.

The shift in investor emphasis to the central bank's decision to unwind its economic stimulus measures kept the US dollar under pressure for the day, while yellow metal benefited. On the data front, at 18:45 GMT, the Final Manufacturing PMI for October fell to 58.4 from 59.2 expected, weighing on the US dollar and pushing gold higher. At 19:00 GMT, the ISM Manufacturing PMI increased to 60.8 from 60.4 expected, supporting the US dollar and limiting gold gains.

Construction spending fell by 0.6 percent, compared to the projected 0.6 percent, weighing on the US dollar, which capitulated to gold price rises. The ISM Manufacturing Index jumped to 85.7 from 82.5 expected, supporting the US dollar and limiting gold's upward momentum for the day.

Meanwhile, Johns Hopkins University reported that the global total of coronavirus infections had surpassed 246.8 million, with a mortality toll of over 5 million. The United States maintained its lead in the world with 45.9 million cases and 745,836 deaths. This also kept the US under pressure on Monday, bolstering gold prices' upward trajectory.

GOLD Intraday Technical Level

Support Resistance

1784.09 1800.19

1774.62 1806.82

1767.99 1816.29

Pivot Point: 1790.72

GOLD - Technical Outlook

On Tuesday, the previous metal, gold, bounced off above the support level of 1,782 levels. The safe-haven gold is currently trading at $1,792, holding above an immediate support level of $1,787.This particular support level is extended by an 50 days EMA (exponential moving average). Therefore, the precious metal gold’s bullish bias seems to dominate today.

The break below the 1,787 level exposes gold's price towards the next support level of 1,774. On the upside, gold’s next resistance stays at 1,798 level, and a break above this level exposes the pair towards 1,806 level.

Alongside, the MACD is supporting a bullish bias in gold. Therefore, the bullish bias dominates above 1,790 and vice versa. All the best!


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