Share:

XAU/USD Current price: $2,038.33

  • Financial markets turned optimistic after US inflation eased further in November.
  • Speculative interest increases bets of a shift in central banks' monetary policy.
  • XAU/USD is in a bearish corrective decline in the near term, slide should remain limited.

Gold price is marginally lower on Thursday as investors rush away from safety following the release of United States (US) inflation figures. The Core Personal Consumption Expenditures (PCE) Price Index, the  Federal Reserve's (Fed) favorite inflation gauge, was up 0.2% MoM and 3.5% YoY in October, meeting expectations while below September readings. Financial markets welcomed the headlines, seen as another confirmation the Fed will soon shift towards a rate-cut monetary policy.

Earlier in the day, the Eurozone reported the November Harmonized Index of Consumer Prices (HICP) at 2.4% YoY, according to preliminary estimates, down from 2.9% in October and below the expected 2.7%, while Germany's HICP published on Wednesday was also below forecast. All in one, price pressures among major economies continued to recede ahead of the year-end, boosting hopes central banks will not need additional rate hikes. Hence, the economies will dodge a steep economic downturn.

Demand for safety also affected government bonds, pushing yields up on the day. The 10-year Treasury note currently yields 4.32%, while the 2-year note offers 4.69%, far below the record peaks posted in October.

XAU/USD short-term technical outlook

The daily chart for the XAU/USD pair shows it could enter a corrective decline after reaching a fresh multi-week high of $2,051.99. The bright metal posted a lower low and a lower high, aiming to end the day in the red. Still, it keeps developing well above all its moving averages, with the 20 Simple Moving Average (SMA) advancing above the longer ones at around $1,985. At the same time, technical indicators turned modestly lower within overbought readings, suggesting speculative interest may take some profits out of the table.

The 4-hour chart offers a similar picture. Technical indicators head lower, further below their recent peaks, although still within positive levels and with modest downward strength. XAU/USD bounced from a bullish 20 SMA, providing dynamic support at around the daily low of $2,031.01. Finally, the longer moving averages maintain their upward slopes far below the shorter one, suggesting additional declines could remain contained.

Support levels: 2,031.00 2,021.40 2,005.70  

Resistance levels: 2,048.20 2,062.90 2,074.90

View Live Chart for XAU/USD  

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD continues to trade in a tight channel above 1.0800 in the second half of the day on Friday, as the improving risk mood makes if difficult for the USD to gather strength. The pair remains on track to snap a five-week losing streak.

EUR/USD News

GBP/USD clings to modest daily gains above 1.2650

GBP/USD clings to modest daily gains above 1.2650

GBP/USD trades in positive territory above 1.2650 in the American session on Friday. The bullish opening in Wall Street doesn't allow the USD to gather strength and helps the pair stay on track to close higher for the fifth consecutive day.

GBP/USD News

Gold holds steady above $2,020 as US yields edge lower

Gold holds steady above $2,020 as US yields edge lower

Gold regained its traction and stabilized above $2,020 after falling below this level during the European trading hours. The benchmark 10-year US Treasury bond yield is down nearly 1% on the day below 4.3%, allowing XAU/USD to keep its footing heading into the weekend.

Gold News

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price crossed $3,000 several times this week but the altcoin failed to sustain above this key level, raising concerns regarding its price trend. ETH price faces the risk of decline as the supply of the altcoin on exchanges is on the rise. 

Read more

Up go stocks, down go bonds

Up go stocks, down go bonds

We knew that yesterday was going to be a good day – at least for the stock markets, given that Nvidia defied the expectations that it would - maybe – fail to deliver $20bn sales in the latest quarter. 

Read more

Majors

Cryptocurrencies

Signatures