Gold's retreat is not yet a reversal

Expert market comment from senior analyst Alex Kuptsikevich of the FxPro Analyst Team: Gold's retreat is not yet a reversal
FxPro | 579 дней спустя

The Fed's comments led to a 3% rise in gold, but the dollar's recovery in the second half of Thursday reduced this gain to just 0.5%. Technically, the outlook is unclear, but fundamentally, things are still on the side of the bulls.

In early trading on Thursday, gold slipped to $2222 on thin liquidity and the triggering of stop orders, which washed short positions out of the market. Throughout the day on Thursday, a stabilisation above $2200 looked attractive for many to take money off the table.

The technical analysis so far gives a mixed picture on the daily timeframes.

On the bullish side, gold's ability to break above previous highs confirmed the Fibonacci extension scenario to 2300 (161.8% of the rally in the last days of February) after a corrective consolidation of 76.4%. The ability to make new highs after a pause is also a bullish signal.

On the bearish side, fatigue after the rise is temporarily evident: the price update of the highs has not been confirmed by the RSI. Moreover, the index left the overbought territory (>70) in the first half of Friday's trading.

Cautious traders may want to wait for a break above the $2155-2190 area, as the chances of further movement in the direction of the break are higher.

In our view, gold's failure on Thursday and the first half of Friday does not look like a reversal, as the push into the dollar in recent hours is the result of speculation that other central banks will be even softer than the Fed. This is a supportive environment for risk assets, including gold. Still, the impressive rally in gold since the second half of February and the recent surge have left the market somewhat overheated and in need of a pause.

By the FxPro Analyst Team

FxPro
Тип: NDD
Регулирование: FCA (UK), SCB (The Bahamas)
read more
Renewed tensions keep risk appetite under wraps

Renewed tensions keep risk appetite under wraps

Sanctions and tariffs are back in the spotlight; Risk markets retreat as sentiment softens; Gold struggles to recover; oil jumps, flirts with $61 level; Dollar remains bid; yen suffering might have legs;
XM Group | 25 минут назад
The British Pound Extends Its Losses

The British Pound Extends Its Losses

The pound remains on the back foot against the US dollar, pressured by growing market conviction that the Bank of England (BoE) will sustain its accommodative monetary policy stance for longer than the US Federal Reserve.
RoboForex | 1ч 34мин назад
Inflation in Focus as Traders Eye BoE’s Next Move | 22nd October 2025

Inflation in Focus as Traders Eye BoE’s Next Move | 22nd October 2025

Markets traded cautiously as investors awaited UK inflation data, a key driver for the Bank of England’s next move. The Pound held firm ahead of CPI, oil extended gains on improving demand, and the US Dollar stayed soft. Broader sentiment was steady as easing US–China trade tensions balanced inflation-driven uncertainty.
Moneta Markets | 21ч 28мин назад