Summary:
- USDJPY and the US 10Y price (TNOTE on xStation5) offer contrary signals for gold traders
- Bulls try to keep gold prices under control this month
- Gold prices walk a tightrope between two notable technical levels
Looking at gold prices one may draw misleading conclusions taking into account what has happened on the bond market and the USDJPY. From a technical point of view the price remains in a consolidation as traders seem to await any signals. Having looked at the chart below we might spot that while the USDJPY has moved in tandem with gold prices, TNOTE has gone in an opposite direction, all of that leaves traders confounded. As a result, we haven’t seen any decisive moves as of yet.
There are contrary signals for gold traders from the US bond market and the USDJPY alike. Source: xStation5
Monthly (MN1)
First and foremost, it needs to notice that a reach of moves has been very narrow so far this month which could result in the lowest volatility for many years. However, we have still a one week of November left so there is a likelihood of more substantial moves. Once the November’s candlestick closes above the close of the prior one, it could negate a bearish signal which emerged in September.
A reach of moves has been remarkably narrow so far this month. Source: xStation5
Weekly (W1)
Bulls have been able to stay above their pivotal support zone placed at around $1265. Furthermore, one may notice that a demand side has been livelier over the course of the recent weeks. Finally, needless to say that buyers are trying to retain the gains made in the prior week.
A long wick of the current candlestick illustrates resolve of a demand side. Source: xStation5
Hourly (H1)
There are two notable technical levels at a hourly time frame. The first one is placed below the price in the vicinity of a 112.8% retracement, whereas the second one is located nearby a 100% retracement. If buyers are sufficiently determined to break a resistance, it could push the price toward $1305.
Gold prices hover between two key technical levels. Source: xStation5
30-minute (M30)
At an intraday interval we may spot while gold prices have broken through $1289 of late, however the ongoing pullback could come to an end nearby a 112.8% retracement where the end of a C-wave has been set.
The ongoing pullback could end when the price nears a 112.8% retracement. Source: xStation5