Gold Prices Bounce Back as Dollar Eases and Yields Reprice
The US Dollar Index has been on an upward trend for the past week, but it took a slight dip near 101.20 on Friday. Despite this, gold prices have bounced back due to a combination of factors, including lower yields, a softer dollar, and decreased crude oil prices.
India's physical gold demand saw a modest improvement this week as lower prices attracted buyers ahead of the festive season. Central bank demand and fiscal concerns remain key support factors for gold in the long term.
The major support zone for gold is between $4,319.61 and $4,230.51, which has been successfully tested three times since early September. The 50-day moving average (MA) sits at $4,317.93, with a key resistance cluster at $4,384.59 to $4,405.59.
Gold's buyers are optimistic after the third successful test of this support zone. A sustained move over $4,319.61 could generate momentum to challenge the main top at $4,399.67 and the 50% level at $4,384.59.