Weekly analysis: Gold, USD, EURUSD and Dow Jones


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The week all eyes will be turning to the central bank meetings as the investors wait for further clues on future policy and the prospect of tapering QE. The RBA will kick off this month central banks policy meeting on Tuesday followed by the US Federal Reserve (Fed) and the Bank of England (BoE).

On the other hand, the investors also waiting for the release of the October US employment report on Friday. Economists are expecting that U.S. employers created 750,000 jobs last month, with the unemployment rate dropping to 5.2%.

On the earnings front, the big tech giants like Apple and Amazon reported weaker-than-expected earnings results last week. Moving ahead to this week, the Q3 earnings season continues, with Uber, Pinterest, Pfizer and Moderna all reporting earnings this week.


Gold price ended lower last week amid Fed's monetary tightening expectations. The FED will begin a two-day policy meeting on Tuesday. During the last FED meeting, the central bank signalled plans to begin tapering its bond-buying stimulus by year’s end and possibly raise interest rates in 2022, a year earlier than it had anticipated.

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For this week, $1,760 is the immediate support level, followed by $1,745. If the pair breaks below the $1,745, the slump will quickly extend toward the $1,720 mark. On the upper side, gold is likely to find immediate resistance at $1,793, any break above the $1,793 level could lead the prices of the precious metal towards the next resistance levels of $1,810 and $1,815.


The US dollar gained strong bullish momentum last Friday ahead of the key FOMC meeting and the Index closed above the 94 psychological level. The upside momentum also boosted after the release of stronger-than-expected US consumer sentiment data. US Michigan's consumer sentiment was revised slightly higher to 71.7 in October of 2021 from a preliminary of 71.4.


This week, the key resistance is located above the previous month high around 94.50, a break above this level will confirm a possible move to 94.80/95.00. On the downside, if the Index loses the 93.70 handle, then we expect a move toward 93.30.


EURO traded extra volatile last week. The currency pair first rose nearly 0.7% against the dollar on Thursday after the European Central Bank decided to leave its monetary policy unchanged. But on Friday, the EURO erased the gains and the European single currency fell back to near the monthly low.


Technically the overall momentum remains bearish, the immediate support for the Euro stands near the psychological level of 1.1500 followed by 1.1450. On the flip side, the first resistance at 1.1590 any break above this level will open 1.1625/40 minimum.


Dow Jones closed out October solidly in the green supported by robust Q3 earnings results and oil price rally. For this week, the main drivers for the Index will be the Q3 earnings results and FOMC decision, and the OPEC meeting outcome.


This week, the first resistance is located around 35,950, a break above this level will confirm a possible move to 36,050/100. On the downside, any meaningful pullback now seems to find some support near the 35,500 zones, below which the slide could further get extended towards the 35,350/00 region.

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-12