Gold: Pivotal week after being sandwiched by opposing factors
Gold (XAU/USD) may be set for a volatility breakout as FOMC looms while still holding above a key support at US$2,000
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Gold (XAU/USD) may be set for a volatility breakout as FOMC looms while still holding above a key support at US$2,000
In the past two weeks, Gold (XAU/USD) has reintegrated below its 20-day moving average but still managed to hold above the US$2,001 low printed on 17 January. Overall, its price actions have been sandwiched by opposing fundamental factors.
The Deribit Bitcoin Volatility Index has reached its lowest level in the last two years, indicating minimal price changes in the short term.
The Bollinger Bands for Bitcoin have tightened to the most since January, and with US CPI figures due at 12:30 UTC, a potential surge is on the cards.
The daily Bollinger Bandwidth (a measurement of historical volatility) of AUD/JPY has increased significantly in the past three weeks and its current level is at 0.09 is the highest since 11 April 2022.