XAUUSD drops to nearly $1970, losing half of its intraday gain ahead of the European session on Monday. The precious metal illustrates the market indecision ahead of October CPI data for the U.S. amid mixed job reports and Fed pivot talks. However, it may be worth noting that China’s risk-off mode express may weigh on downside risk for XAUUSD.
That says downbeat trade numbers on dragon nations for Oct may keep bears inspiring due to China’s Covid fear. Note that the recent market talk about pausing the rate hike course of Global central banks’ backed by easy rate hikes from RBA, and BOC, marking U.S. inflation data next week.
Gold retreats from an old resistance line of three weeks, teasing late sellers of XAUUSD as they return from the RSI’s overbought level. However, an apparent outbreak occurs from the 200 MA level near $1,660 on the XAUUSD 4-H chart, causing a bridle on sellers.
The precious metal can reach near $1600 by breaking previous supports of $1615 and $1630. However, if the price remains above $1682, it can trigger to $1700 a round figure following the previous month’s high of $1730.
