Gold Price Forecast: XAU/USD on the Decline
Analyzing XAU/USD Prices: Technical Outlook
The daily chart for gold depicts the yellow metal exhibiting a neutral-to-bullish trend as long as it remains above the daily moving average (DMA). However, with the ongoing decline in XAU/USD, attention is drawn to the potential impact on the 50-DMA at $1966.41, followed by the 200-DMA at $1952.74. Additional support lies at the 100-DMA at $1941.07. A breach of these levels could lead to further downward pressure on XAU/USD. On the flip side, a potential price rebound is in the cards, but speculators pushing for an upward move need to surpass the highest point on October 27, which is $2009.42.
Gold Loses Momentum Ahead of the Federal Reserve Decision
The U.S. Bureau of Labor Statistics (BLS) revealed that the inflation slowdown in the U.S. continues, with overall inflation at 3.1% compared to the same period last year, slightly lower than October's 3.2%. However, core inflation remains at 4% over the 12 months leading up to November. Monthly figures vary, with CPI at 0.1%, exceeding the 0% forecast, while core CPI is at 0.3%, as expected, but higher than October. The release of this data has bolstered daily gold prices, although it tempered the extent of its increase, falling below the $1985 mark, weighed down by the U.S. Treasury bond interest rate recovery. Despite the U.S. Dollar (USD) remaining soft, as indicated by the U.S. Dollar Index (DXY) dropping 0.23% to 103.85, gold has struggled to recover following its recent losses.
Meanwhile, traders are gearing up for the Federal Reserve's decision on Wednesday, followed by a press conference by Chairman Jerome Powell. Despite positive inflation outcomes, future contracts in the currency market have priced in a 100-basis-point cut in interest rates by 2024, indicating a cautious approach. On the same day, BLS will announce producer price levels.
The daily chart for gold depicts the yellow metal exhibiting a neutral-to-bullish trend as long as it remains above the daily moving average (DMA). However, with the ongoing decline in XAU/USD, attention is drawn to the potential impact on the 50-DMA at $1966.41, followed by the 200-DMA at $1952.74. Additional support lies at the 100-DMA at $1941.07. A breach of these levels could lead to further downward pressure on XAU/USD. On the flip side, a potential price rebound is in the cards, but speculators pushing for an upward move need to surpass the highest point on October 27, which is $2009.42.
Gold Loses Momentum Ahead of the Federal Reserve Decision
The U.S. Bureau of Labor Statistics (BLS) revealed that the inflation slowdown in the U.S. continues, with overall inflation at 3.1% compared to the same period last year, slightly lower than October's 3.2%. However, core inflation remains at 4% over the 12 months leading up to November. Monthly figures vary, with CPI at 0.1%, exceeding the 0% forecast, while core CPI is at 0.3%, as expected, but higher than October. The release of this data has bolstered daily gold prices, although it tempered the extent of its increase, falling below the $1985 mark, weighed down by the U.S. Treasury bond interest rate recovery. Despite the U.S. Dollar (USD) remaining soft, as indicated by the U.S. Dollar Index (DXY) dropping 0.23% to 103.85, gold has struggled to recover following its recent losses.
Meanwhile, traders are gearing up for the Federal Reserve's decision on Wednesday, followed by a press conference by Chairman Jerome Powell. Despite positive inflation outcomes, future contracts in the currency market have priced in a 100-basis-point cut in interest rates by 2024, indicating a cautious approach. On the same day, BLS will announce producer price levels.
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