With markets reassessing the Fed’s tightening expectations after the US Q3 GDP miss, gold price lacks impetus so far this Friday, pivoting around the $1800 level. The bond market rout extends, with the yield curve flattening in play, which helps put a floor under gold price. The bright metal now looks forward to the Fed’s preferred inflation gauge, the Core PCE index, for fresh trading impulse. Meanwhile, the month-end flows and pre-FOMC cautious trading could influence gold’s performance. The Technical Confluences Detector shows that gold is trading listlessly below the powerful hurdle at $1802. The next stop for gold bulls is envisioned at $1809.
The previous week’s high of $1814 will then grab the buyers’ attention. Further up, the bulls will look to clear a bunch of resistance levels around $1820, which is the intersection of the pivot point one-day R2, pivot point one-month R1 and pivot point one-week R1. Alternatively, the immediate decline could be capped at $1796, which is the meeting point of the previous low four-hour and SMA5 one-day. The next significant support is seen at $1793, the convergence of the previous day’s low and SMA200 one-day. Further south, the confluence of the Fibonacci 61.8% one-month and pivot point one-day S1 at $1791-$1790 will be the level to beat for gold bears.
