Technical Analysis

GOLD Analysis – October 22, 2021

By LonghornFX Technical Analysis
Oct 22, 20213 min

XAU/USD Pivot Point Resistance 1,782

Gold was bullish during the Asia session on Friday morning, on track for its second weekly gain. A falling dollar brought some comfort from higher U.S. bond yields and rising bets that central banks worldwide will soon begin asset cutting.

Gold futures had risen 0.35 percent to $1,788.15. (3:47 AM GMT). The dollar, which typically has a negative correlation and moves in the opposite direction of XAU/USD, fell slightly on Friday. In the month to date, gold has traded in a broad $1,749 to $1,800 range, with gains restricted by a sharp increase in U.S. benchmark 10-year Treasury yields.

According to Fed Governor Christopher Waller on Thursday, the Federal Reserve of the United States should allow its $8 trillion balance sheet to shrink during the next few years. His colleague, Atlanta Fed President Raphael Bostic, stated that he expects strong inflation to continue until 2022 and that the U.S. central bank should raise interest rates by the end of the year. Later in the day, Fed Chairman Jerome Powell will participate in a policy panel discussion.

As per Reuters, the Bank of Japan is debating whether to phase down a COVID-19 loan program if the number of COVID-19 cases in the country continues to diminish. If the central bank decides to phase out the program, it might leave a crucial crisis mode policy sooner than expected.

Meanwhile, according to data issued earlier in the day, Japan's national core consumer price index (CPI) soared 0.1 percent year on year in September. According to the report, the national CPI increased by 0.4 percent month on month and 0.2 percent year on year. Silver rose 0.2 percent to $24.18 per ounce in other precious metals, putting it on track for its sixth weekly rise in a row. Platinum increased by 0.5 percent, while palladium increased by 1%.

GOLD Intraday Technical Level

Support Resistance

1776.81 1789.40

1769.08 1795.93

1763.61 1802.40

Pivot Point: 1782.28

GOLD - Technical Outlook

Gold continues to trade bullish and is now priced at $1,778 per ounce. Technically, gold is trading choppy and the odds of a bullish trend continuation seems probable. The technical side of gold suggests a bullish bias as RSI is still holding above 50 on a 4-hour timeframe.

The daily pivot point level is supporting gold at 1,782, and a breach of that level exposes the metal until the levels of 1,769 and 1,757.On the flip side, gold’s major resistance stays at 1,788 and a bullish crossover of this exposes the metal until the 1,800 level. All the best!


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