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The Chart of the Week, Gold bears eye US dollar technicals

  • Gold bulls eye a break of recent rally highs ahead of the Fed.
  • Bears bank on DXY technicals and a continuation from key support. 

It was a turbulent end to the week for the price of gold with the dollar index pulling back below 112 losing around 1% on the week with central banking at play. XAU/USD ended up 1.8% to $1,658 within a rally from $1,617.28 to $1,657.95 the high. Technically, the rally leaves the outlook complex for the week ahead as we head into the blackout period before the November Federal Reserve interest rate decision. 

Gold weekly and daily charts

The longer-term outlook remains bearish but we have come up to break the daily trendline resistance:

This leaves the emphasis on the upside while above it, especially if the bulls can get through this area of 4-hour resistance:

 

The Federal Reserve is still expected to lift the fed funds rate by 75 bps in November, the fourth…

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