EURJPY Price Analysis: Next on the upside emerges 147.00

• EURJPY adds to Monday’s uptick and surpasses 145.00.
• The recovery faces the next hurdle at the 147.00 zone.

EURJPY extends the auspicious start of the week and reclaims the area above the 145.00 barrier on Tuesday.

If the corrective bounce gathers extra steam, then the cross should face initial resistance at the so far November high at 147.11 (November 9). The surpass of this level could open the door to a more meaningful move to the 2022 peak at 148.40 (October 21).

In the longer run, while above the key 200-day SMA at 138.21, the constructive outlook is expected to remain unchanged.

WANT DIRECT TALK TO OUR EXPERTS CONTACT THE LEARNING ART

Gold Price Forecast: XAUUSD unlikely to move much further from the lows

Gold climbed toward $1,650 despite the hawkish Fed tone. However, the recovery is set to stall, strategists at Commerzbank report.

Gold under pressure following the hawkish remarks made by the Fed chair

“Fed Chair Jay Powell stressed that the speed of rate hikes was not so important anymore and that the key question was the level at which interest rates would finally peak. And this, Fed members now believe, looks set to be higher than they had assumed in September.”

“The Fed’s goal is to bring real interest rates into positive territory. This means that the key rate will remain at a high level until such time as the rate of inflation has fallen below it.”

“Generally speaking, the FOMC meeting turned out to be more hawkish than expected, which was then reflected in higher interest rate expectations and a firmer dollar and ultimately caused the Gold price to fall. Shortly before hitting its yearly low, Gold did a U-turn and began climbing again, though today’s US labour market report could put the brakes on its recovery again.”

WANT DIRECT TALK TO OUR EXPERTS CONTACT MONEY LIFE RESEARCH

Gold Price Forecast: XAU/USD consolidates above $1,660 level amid modest USD strength

• A combination of factors prompts some selling around gold on Thursday.
• Rising US bond yields revive the USD demand and exert some pressure.
• Bets for a less hawkish Fed offer support ahead of the US Q3 GDP report.

Gold struggles to gain any meaningful traction on Thursday and seesaws between tepid gains/minor losses through the first half of the European session. The XAU/USD remains below a nearly two-week high set the previous day and is currently trading around the $1,663-$1,662 area, nearly unchanged for the day.

The US dollar regains some positive traction and stages a goodish rebound from its lowest level since September 20, which, in turn, acts as a headwind for the dollar-denominated gold. Apart from this, a positive tone around the US equity futures further contributes to capping the upside for the safe-haven precious metal.

That said, expectations that the Fed may slow the pace of its policy tightening helps limit the downside for the non-yielding gold. The incoming US macro data pointed to signs of a slowdown in the world's largest economy and forced investors to trim their bets for more aggressive rate hikes by the US central bank.

Traders also prefer to move to the sidelines ahead of Thursday's key event/data risks. The European Central Bank is scheduled to announce its policy decision and is widely expected to hike interest rates by 75 bps. Apart from this, the Advance US Q3 GDP report should infuse some volatility and provide a fresh impetus to gold.

From a technical perspective, the recent recovery from the vicinity of the YTD low stalls near the $1,675 intermediate hurdle. This is followed by the $1,682 supply zone, which if cleared decisively will set the stage for an extension of the recent positive move witnessed over the past week or so, from the vicinity of the YTD low.

WANT DIRECT TALK TO OUR EXPERTS CONTACT MONEY LIFE RESEARCH

Gold Price Forecast: XAU/USD hits three-week low amid surging bond yields, stronger USD

• A combination of factors drags gold to a fresh three-week low on Wednesday.
• Hawkish Fed expectations, rising US bond yields, stronger USD exert pressure.
• The risk-off impulse could lend some support and help limit any further losses.

Gold continues losing ground through the early North American session and hits a fresh three-week low, around the $1,630 area in the last hour. The downtick is exclusively sponsored by a strong pickup in demand for the US dollar, which tends to weigh on the dollar-denominated commodity.

In fact, the USD Index, which measures the greenback's performance against a basket of currencies, has now recovered a major part of its weekly losses amid rising bets for aggressive rate hikes by the Fed. The US central bank remains committed to bringing inflation under control and is expected to deliver another supersized 75 bps rate increase at the next policy meeting in November.

Hawkish Fed expectations trigger a fresh leg up in the US Treasury bond yields and continue to act as a tailwind for the buck. In fact, the yield on the rate-sensitive 2-year US government bond rallies to a new 15-year peak and the benchmark 10-year Treasury note hit its highest level since 2008. This is seen as another factor driving flows away from the non-yielding gold.

The USD maintains its strong bid tone and seems rather unaffected by mixed US housing market data. This, along with rising bets for a jumbo rate hike by the European Central Bank and the Bank of England, suggests that the path of least resistance for the XAU/USD is to the downside. Hence, a slide back towards the YTD low, around the $1,615 area, remains a distinct possibility.

That said, a turnaround in the global risk sentiment - as depicted by a generally weaker tone around the equity markets, could lend support to the safe-haven gold. That said, any attempted recovery might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly.

WANT DIRECT TALK TO OUR EXPERTS CONTACT MONEY LIFE RESEARCH