Gold Rose Amid Weak US Data And Easing Dollar
Gold rose more than 1.40% on Friday as US Treasury yields eased and the dollar softened, with XAU/USD trading at $4,194 after rebounding from a daily low of $4,130 and moving towards $4,200. US data pointed to weaker household confidence: the University of Michigan Consumer Sentiment Index for October fell to 46.3 from 48.1, below the 47.6 forecast, while 1-year inflation expectations edged up from 4.6% to 4.7% and the 5-year view increased from 3.4% to 3.5%. Markets largely discounted an October move, assigning an 81% probability that rates stay in the 3.75%–4% range; they also priced an 81% chance of a 25-basis-point hike in December, based on Prime Terminal data.
Market Moves And Technical Levels
Moves later in the session were tempered as the US 10-year T-note yield rose 1.3 basis points to 5.248%, while the US Dollar Index (DXY) added 0.18% to 102.30. Geopolitical risk remained in focus, with continued hostilities around Hormuz and reports of mines in Bab el Mandab. Technically, gold probed up to $4,207, with RSI rising but still below 50; a weekly close above $4,200 would bring resistance at the 100-day SMA ($4,260), then the 50-day SMA ($4,335), $4,500, and the 200-day SMA ($4,529), while support sits at $4,150, $4,100, $4,050, and the July 29 low at $3,996.
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