Gold Price Forecast: Looks to preserve weekly gains near $1,750 on Black Friday
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UNLOCK OFFER- Gold price consolidates gains amid subdued trading on Black Friday.
- Dovish Federal Reserve pivot keeps the US Dollar, US Treasury bond yields at weekly lows.
- Gold price could gather strength before resuming the uptrend toward $1,787.
Gold price is building onto the previous gains, trading at the highest level so far this week. The United States Dollar (USD) continues to lick its wounds amid a partial holiday in America on Black Friday.
Dovish Federal Reserve pivot keeps weighing on United States Dollar
The US Dollar and US Treasury bond yields continue to hold the lower ground near multi-week troughs, offering \much-needed support to Gold price on the final trading day of the week. Expectations that the US Federal Reserve (Fed) has moved away from its bigger rate increments strategy, as risks of an economic slowdown mount, have underpinned the extended weakness in the US Dollar. At the time of writing, the US Dollar Index is trading close to the three-week low of 105.63 while the benchmark 10-year United States Treasury bond yields are flirting with six-week troughs near 3.65%, down 1.50% on the day.
The US Dollar is headed for a weekly loss, reeling from the pain of dovish Federal Reserve Minutes, which showed earlier this week, a “substantial majority” of Federal Reserve policymakers agreed it would “likely soon be appropriate” to slow the pace of rate hikes. Black Friday’s partial holiday in the United States following the Thanksgiving Thursday trading will likely leave the US Dollar struggling, keeping the buoyant tone intact around Gold price.
Gold price cheers China’s covid woes
Despite Gold premiums in China’s top hubs due to the renewed covid lockdowns, concerns over the impact of these restrictions on the Chinese economy are keeping markets unnerved. The bleak economic outlook for China intensifies worries over its spillover effect on the global economy, bolstering demand for Gold as a traditional safe-haven asset. China reported record-high COVID-19 infections on Thursday. Beijing city officials resorted to lockdowns of huge apartment blocks and commercial buildings, confining people to their flats.
Nomura cut its China Gross Domestic Product (GDP) forecast for the fourth quarter to 2.4% YoY from 2.8%, which is far short of China's official target of about 5.5 per cent this year.
Gold price technical outlook: Daily chart
Nothing seems to have changed technically for Gold price, as the upside bias remains intact after it yielded a bull flag on Thursday.
Doors remain open toward the three-month high of $1,787 should bulls take out the intraday high at $1,761 and this week’s high near $1,770..
The 21 and 100-Daily Moving Average (DMA) bullish crossover remains in play, backing the further upside in Gold price.
The 14-day Relative Strength Index (RSI) is trading flat above the midline, keeping bullish traders hopeful.
On the downsside, the psychological $1,750 level will test the bullish commitments. The next support will be seen at Monday’s low of $1,733.
- Gold price consolidates gains amid subdued trading on Black Friday.
- Dovish Federal Reserve pivot keeps the US Dollar, US Treasury bond yields at weekly lows.
- Gold price could gather strength before resuming the uptrend toward $1,787.
Gold price is building onto the previous gains, trading at the highest level so far this week. The United States Dollar (USD) continues to lick its wounds amid a partial holiday in America on Black Friday.
Dovish Federal Reserve pivot keeps weighing on United States Dollar
The US Dollar and US Treasury bond yields continue to hold the lower ground near multi-week troughs, offering \much-needed support to Gold price on the final trading day of the week. Expectations that the US Federal Reserve (Fed) has moved away from its bigger rate increments strategy, as risks of an economic slowdown mount, have underpinned the extended weakness in the US Dollar. At the time of writing, the US Dollar Index is trading close to the three-week low of 105.63 while the benchmark 10-year United States Treasury bond yields are flirting with six-week troughs near 3.65%, down 1.50% on the day.
The US Dollar is headed for a weekly loss, reeling from the pain of dovish Federal Reserve Minutes, which showed earlier this week, a “substantial majority” of Federal Reserve policymakers agreed it would “likely soon be appropriate” to slow the pace of rate hikes. Black Friday’s partial holiday in the United States following the Thanksgiving Thursday trading will likely leave the US Dollar struggling, keeping the buoyant tone intact around Gold price.
Gold price cheers China’s covid woes
Despite Gold premiums in China’s top hubs due to the renewed covid lockdowns, concerns over the impact of these restrictions on the Chinese economy are keeping markets unnerved. The bleak economic outlook for China intensifies worries over its spillover effect on the global economy, bolstering demand for Gold as a traditional safe-haven asset. China reported record-high COVID-19 infections on Thursday. Beijing city officials resorted to lockdowns of huge apartment blocks and commercial buildings, confining people to their flats.
Nomura cut its China Gross Domestic Product (GDP) forecast for the fourth quarter to 2.4% YoY from 2.8%, which is far short of China's official target of about 5.5 per cent this year.
Gold price technical outlook: Daily chart
Nothing seems to have changed technically for Gold price, as the upside bias remains intact after it yielded a bull flag on Thursday.
Doors remain open toward the three-month high of $1,787 should bulls take out the intraday high at $1,761 and this week’s high near $1,770..
The 21 and 100-Daily Moving Average (DMA) bullish crossover remains in play, backing the further upside in Gold price.
The 14-day Relative Strength Index (RSI) is trading flat above the midline, keeping bullish traders hopeful.
On the downsside, the psychological $1,750 level will test the bullish commitments. The next support will be seen at Monday’s low of $1,733.
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