Intraday Market Analysis – XAU resumes uptrend

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Intraday Market Analysis - XAU resumes uptrend

XAUUSD breaks to higher range

Gold popped higher following a deceleration in US CPI last month. After a rally above the August high of 1805, a brief consolidation saw support at 1765 right over the 20-day moving average. As the trading range compressed, the pressure was building up ahead of a breakout. This came in the shape of a strong impetus above 1810 which could lead to a runaway rally above 1850. As the RSI shot into the overbought  area a pullback could ensue and the base of the breakout at 1790 is a key level to maintain the upward bias.

USOIL sees timid rebound

WTI crude bounced after OPEC said it expected demand growth from relaxed COVID policies in China. The price took off at its 12-month low and the psychological level of 70.00. But the bulls will need strong and convincing momentum above this month's high at 82.00 before they could turn the pessimistic mood around. Before that, the support-turned-resistance at 77.00 is the first hurdle where renewed selling could be expected while the RSI shows an overbought situation. 73.30 is a fresh support and 70.00 a critical floor.

UK 100 finds support

Equities soared as cooling US inflation spurred hopes of a dovish Fed stance. On the daily chart, the FTSE 100 is holding onto its gains after a break above August's high of 7560, while still remaining under pressure from this year's highs around 7640. Support has been found at 7420, the junction between the base of a previous bullish breakout and the 30-day moving average. 7550 is the first resistance and a close above 7615 would resume the uptrend. A bearish breakout, however, would cause a correction to 7290.

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