Gold price (XAU/USD) trades with a positive bias for the second straight day and sticks to its intraday gains near the $2,675 area, or a three-week peak through the first half of the European session on Wednesday. Against the backdrop of persistent geopolitical risks, the disappointment over the lack of details about China’s fiscal stimulus temper investors’ appetite for riskier assets. This is evident from a weaker tone around the equity markets and turns out to be a key factor benefiting the safe-haven precious metal.Meanwhile, the anti-risk flow leads to a further decline in the US Treasury bond yields and lends additional support to the non-yielding Gold price. That said, firming expectations for a less aggressive policy easing by the Federal Reserve (Fed) and bets for a regular 25 basis points (bps) rate cut in November should act as a tailwind for the US bond yields. This, in turn, lifts the US Dollar (USD) to its highest level in more than two months and might hold back bullish traders from placing fresh bets around the commodity. Daily Digest Market Movers: Gold price benefit from risk-off impulse, despite bullish USD
Technical Outlook: Gold price bulls not ready to give up, might aim to conquer the $2,700 markFrom a technical perspective, any subsequent move up is likely to confront some resistance near the $2,685-2,686 region, or the
all-time peak touched in September. This is closely followed by the $2,700 round-figure mark, which if cleared decisively will set the stage for an extension of a well-established multi-month-old uptrend amid positive oscillators on the daily chart. On the flip side, immediate support is pegged near the $2,650 area, below which the Gold price could slide to the $2,632-2,630 region. Any further decline is likely to attract some buyers and remain limited near the $2,600 round-figure mark. The latter should act as a key pivotal point, which if broken decisively might prompt some technical selling and pave the way for deeper losses.(An earlier version of this story was corrected on October 16 at 06:48 GMT to say, in the second bullet, that the pair is XAU/USD, not XUA/USD.)More By This Author:Japanese Yen Remains On The Front Foot Against USD, Upside Potential Seems Limited AUD/USD Declines On Negative Outlook For Trading Neighbor China GBP/USD Price Forecast: Bears Have The Upper Hand, 50-Day SMA Breakdown In Play
