Solid News

XAUUSD Market Update

11/2/2022 1:47 PM

Gold quotes stay around the key level of 1650.0 against the high probability of continuing the "hawkish" rhetoric from the US Federal Reserve.

Market participants are confident that within the framework of today's meeting, agency officials will continue to tighten monetary conditions and raise the interest rate by 75.0 basis points, thereby increasing the risks of a recession, the key leading indicator of which is the interest rate spread between yield rates of 10-year and 3-year monthly bonds suggests that this event will come soon, as the yield of short-term bonds (4.198%) exceeded the yield of long-term (4.050%).

Meanwhile, the asset continues to close deals for sale. According to the latest report from the US Commodity Futures Trading Commission (CFTC), last week, in the positions of swap dealers, there was again a decrease in the number of contracts with bears by 2.571K, while buyers increased them by 2.423K. The statistics signal the ongoing alignment of the balance of supply and demand, which is still seriously biased toward sellers.

On the daily chart of the asset, the price is moving in a downward channel, holding near the resistance line.

Technical indicators maintain an increasing sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms downward bars in the sell zone.

Resistance levels: 1666.0, 1727.0. | Support levels: 1628.0, 1580.0.

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