

Market Analysis
Gold prices (XAU/USD) experienced a slight recovery on Thursday, snapping a six-day losing streak that brought it to nearly a three-week low, around the $2,605-$2,604 area tested the day before. The uptick appears to be driven by repositioning ahead of crucial US inflation data, which could shape expectations for the Federal Reserve’s next rate decision and boost demand for the non-yielding yellow metal.
Meanwhile, expectations that the Fed will lower interest rates by 25 basis points in November keep the yield on the benchmark 10-year US Treasury bond above the 4% level. This supports the US Dollar (USD), which has reached an eight-week high, creating headwinds for gold. As a result, traders might want to wait for clear signals of strong follow-through selling before concluding that the recent pullback from gold’s all-time high is over.
Technical Outlook: Bearish Bias and Trading Range Breakdown
From a technical standpoint, this week's break below the $2,630 level, marking the lower edge of a short-term trading range, has been a key signal for bearish traders. While daily chart oscillators are losing momentum, they still remain in positive territory. Additionally, gold has managed to stay above the $2,600 mark, suggesting caution before committing to further downside positions. A confirmed break below this level could trigger a deeper decline towards the $2,560 area, with further support in the $2,535-$2,530 zone, and eventually the $2,500 psychological threshold.
On the upside, the former support area around $2,630-$2,635 now serves as immediate resistance. Any upward movement is likely to attract selling pressure near the $2,657-$2,658 region. Should gold manage to surpass this, it may rally toward the $2,670-$2,672 supply zone. Beyond this level, bulls could aim for the all-time high around $2,685-$2,686, set in September. A move past the $2,700 mark would signal a continuation of the broader multi-month uptrend.
Paraphrasing text from "FX Street" all rights reserved by the original author.