Solid News

XAU/USD is trading in an uptrend at 1784.0. The growth of the precious metal quotes continued this week, the main reason for which was the correction of the US dollar, which fell from 106.000 points to 105.200 points in the USD Index. The driver of the "bearish" trend in the asset was the statistics on the Consumer Price Index, which reflected a decrease in the indicator to 8.5% from 9.1%. Now the market is waiting for the easing of the US Federal Reserve's rhetoric regarding the adjustment of monetary policy parameters and, in particular, the increase in interest rates.

In turn, data on China's foreign trade confirmed the exit of one of the largest buyers of gold from the crisis associated with a new outbreak of COVID-19 that began in mid-summer. Imports rose by 2.3% from 1.0% a month earlier, and Exports increased by 18.0% after increasing by 17.9% in the previous month.

Serious changes have also taken place in the demand for the precious metal from investors: according to the report of the US Commodity Futures Trading Commission (CFTC), last week the number of net speculative positions in the asset increased sharply to 124.3 thousand, adding 31.6 thousand at once, which is the sharpest weekly increase since November 2021. If the trend continues this week, one can state a change in the trend in XAU/USD.

On the weekly chart of the asset, the price is trying to consolidate above the resistance line of the descending channel with dynamic boundaries of 1780.0–1650.0. Technical indicators strengthen the buy signal: fast EMAs on the Alligator indicator started moving away from the signal line, and the AO oscillator histogram is forming ascending bars, being in the buy zone.

Support levels: 1758.0, 1680.0. | Resistance levels: 1808.0, 1876.0.