Analysing The XAU/USD Pair: Gold Volume in Global ETFs Decreased By 59 Tons In September

By RoboForex Analytical Department

The total volume of gold in global ETFs (Exchange-Traded Funds) decreased by nearly 59 tons in September, according to a report from the World Gold Council. It's crucial to comprehend that the situation might have altered significantly following the onset of the conflict between Israel and HAMAS. Nevertheless, we can infer that before the escalation in the Middle East, large institutional investors were allowing for another Federal Reserve rate hike by the end of 2023.

Data on consumer inflation in the United States, which grew by 3.7% in September compared to the previous year, were published yesterday. The forecast was set at 3.6%. Investors are increasingly doubtful about the US Federal Reserve’s resolve to raise the interest rate by the year's end. This will act as a factor contributing to gold's rise.

Technical Analysis Of The XAU/USD Currency Pair

On the D1 timeframe for the XAU/USD pair, the resistance level remains at 1929.14, while support is at 1813.28. It seems that this channel will persist until the end of the following week.

On the H1 timeframe, quotes have settled above the 1857.58 mark, suggesting that growth towards the D1 resistance level may continue. However, its breakthrough is improbable, so selling is only relevant if quotes return below the 1855 level, aiming for 1813.28. In case the 1813.28 support is breached, the target could be set at 1785.13. Short positions can be opened anticipating a rebound from 1929.14.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.