XAU/USD Extends its 3-Month Highs but Remains Overbought


XAU/USD Analysis

The precious metal is running a relief rally of more than 8% in November, in its first profitable month since March, while last week was the best of 2022. This is largely fueled by the demise of the US Dollar, as markets expectations around the Fed's tightening path eased, after last week's soft CPI report.

XAU/USD has moved above the 200Days EMA and extends its three-month highs today, bringing the 1,808-14 region in its crosshairs, although further advance that would challenge the June highs (1.880) looks like a stretch for now.

On the other hand, the Relative Strength Index (RSI) has been hovering around overbought conditions for a few days now. Such conditions have sparked declines in the recent past and could lead to fresh pressure towards 1,729-1,710, but XAU/USD seems well protected under this region. Daily closes below the EMA200 (at around 1685) would shift near-term bias back to the downside.

On a fundamental level, the US Fed has been preparing market for a moderation in the pace of rate hikes, but Chair Powell has ruled out any pause and pointed to a higher terminal rate than previously expected [1]. Furthermore, policy makers will have two more inflation reports before their next decision in mid-December, making any pivot talk premature.

Trade the News: View our Economic Calendar

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.



Retrieved 19 May 2024 https://www.federalreserve.gov/monetarypolicy/fomcpresconf20221102.htm

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.