Spot Gold is declining after a repeated failure to continue gains above a psychological $ 1800 barrier, with growing expectations that the U.S. Federal Reserve could finally announce the start of a stimulus reduction at its Nov. 3 policy meeting and market participants operating with information on higher probability of tariffs in 2022..
Reduced stimulus and higher interest rates are usually negative factors for the yellow metal, with a short-term outlook also turning negative on a sustained risk environment.
Technical studies weaken on a daily chart as the price returned below a 200-day moving average and stochastic direction south after diverging from a rising price earlier.
Pivot supports lay at $ 1781 (top of a thinning daily Ichimoku cloud) and $ 1778 (Fibonacci 38.2% retracement of $ 1721 / $ 1813 bull leg), whose break would generate a reverse signal and open a path for extension to future strong supports at $ 1760/56 (October 18 higher low / Fibonacci 61.8% decline of $ 1721 / $ 1813) and higher base at $ 1750 zone.
A repeated weekly close below $ 1800 would add negative signals, but the metal is on track for positive monthly performance after a 3% fall in September.
Res: 1793, 1800, 1813, 1834
Sup: 1781, 1778, 1767, 1760