- Despite the risk-off tone on Friday, gold dropped 0.4% to USD1223/oz.
- Gold is currently trading at $1222.41/oz with a high of $1224.79/oz and a low of 1222.17/oz.
After rising from a low of $1196, the precious metal dropped on Friday despite there being a risk of mood with investors returning in the US from Thanksgiving Thursday for just half a day's trade on Wall Street.
On light liquidity, the Dow and the S&P500 were both down 0.7%, and the Nasdaq down 0.5%. (Oil prices also collapsed on Friday night, with WTI down 7.7% and Brent down 6.1%). US yields, the US 10yr treasury yield dropped from 3.07% to 3.04%, while 2yr yields moved in a slightly lower range of between 2.80%-2.82%.
Meanwhile, we have Fed speakers and the FOMC minutes coming up this week, ahead of next month's Fed meeting. The Fed fund futures on Friday continued to price the chance of the next rate hike on 19 December at 75% and the dollar reached highs just shy if the 97 handle as the main culprit for such a decline in gold - (Gold for December delivery on Comex fell $4.80, or 0.4%, to settle at $1223.20/oz an ounce settling at 12:30 Eastern time, about an hour early for Black Friday and rose less than 0.1% for the week).
Eyes on the Fed
With respect to the FOMC minutes, markets are looking for an optimistic tone, but nothing that is likely to create too much of a positive theme considering it will not be anything new, although could well underpin the divergence between central banks considering the recent flop in EZ data and ECB expectations - Which, ultimately, should be positive for the greenback and weigh on the price of gold.
"Markets will carefully watch whether or not Fed Chair Powell signals concern about headwinds or a potential pause in policy. We expect him to remain cautious but still upbeat on the US outlook, which should be hawkish given recent market pricing (now one fewer hike in 2019)," analysts at TD Securities explained.
Gold levels
Gold ended at a 2-week high mid-week last week, although the price struggles to gain traction through the 21-D SMA and found tougher resistance around the 38.2% fibo at $1,238. However, gold is in consolidation and while above the 23.6% Fibo retracement at $1208, bulls remain on the defensive and look to target the 50% fibo at $1262. On the downside, the bears need to break below the 61.8% Fibo at $1,192/oz.
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.
Recommended content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.