FX.co ★ XAU/USD, GOLD

XAUUSD During the first half of Fridays European session, gold (XAU/USD) climbs to the upper end of its daily range after drawing some dip-buyers near the overnight swing low. The non-yielding yellow metal is supported by a little decline in the US dollar (USD) from its peak since early August, which comes amid forecasts that the US Federal Reserve (Fed) will cut borrowing costs twice more this year. Aside from this, the cautious market sentiment supports the safe-haven bullion in the midst of the protracted US government shutdown and the escalating conflict between Russia and Ukraine. The XAU/USD pair is still below the psychological $4,000 mark and the all-time high reached on Wednesday, despite the positive fundamental backdrop. A major element in keeping the price of gold under control is the Israel-Hamas agreement to the first phase of the peace plan, which also serves to reduce certain geopolitical concerns. Additionally, the political unrest in France and Japan, which has been affecting the common currency and the Japanese yen (JPY), restricts the USDs losses and keeps the commodity from rising for the eighth straight week in anticipation of further remarks from Fed officials. The initial indication of bullish fatigue might be an overnight fall and acceptance below the 100-hour Simple Moving Average (SMA). However, before setting up for any significant corrective slide, it will still be wise to wait for some follow-through selling below the overnight swing low, which is located around $3,944. At that point, the price of gold may accelerate its decline and challenge the $3,900 round-figure mark. Conversely, any intraday upward move above $4,000 is probably going to run into resistance close to the $4,035–4,036 range before reaching the $4,059–4,060 area or the all-time high reached on Wednesday. Bulls will view some follow-through purchases as a new catalyst, pushing the price of gold closer to the $4,100 round-figure threshold.