- Spot gold is back to flat on the day around $1860, having found good demand when it dipped to $1850.
- Friday’s US consumer and JOLTs job openings data supported the precious metal.
- Attention now turns to a speech from Fed’s Williams at 1710GMT.
Spot gold (XAU/USD) prices have in recent trade recovered back to trading flat on the day, having at one point prior to the US open been trading with losses of nearly 1.0%. The precious metal appeared to find good demand at $1850 as gold bulls and those seeking inflation protection bought the dip.
Prices got a small boost at 1500GMT in wake of the release of the University of Michigan Consumer Sentiment survey for November and the JOLTs Job-Opening report. The former showed sentiment hitting decade lows as consumers despaired over persistent inflationary pressures, while the latter showed that in September, the number of job opening exceeded the number of unemployed persons by a record 2.8M and the quit rate hit a record high at 3.0% (both indicators of a very strong jobs market).
In particular, the strong JOLTs report adds to a growing mountain of evidence that inflation is going to remain persistent above the Fed’s 2.0% target for quite some time; high labour demand equals high wage growth which leads to higher inflation. Gold bugs will now be hoping that the precious metal can challenge its prior weekly highs just shy of the $1870 level. At present, XAU/USD is close to $1860.
Fed under pressure to respond to inflation
Spot prices are on course to post gains of around 2.5% this week, with the bulk of the move higher coming in wake of a much hotter than expected US Consumer Price Inflation report on Wednesday, which showed consumer prices surging at their fastest YoY rate since 1990. Pressure is mounting on the Fed to take its foot off the accelerator (i.e. remove monetary stimulus at a faster rate).
Thus, a speech from influential Fed Board of Governors member and NY Fed President John Williams at 1710GMT will be closely scrutinised. If he continues to emphasise that the Fed is willing to be patient with regard to rate hikes and that the bank continues to believe the spike in inflation to be transitory, this may exacerbate fears that the Fed is making a dovish mistake. This would likely help gold finish the week with a flurry.
|Today last price||1862.37|
|Today Daily Change||-0.26|
|Today Daily Change %||-0.01|
|Today daily open||1862.63|
|Previous Daily High||1866.01|
|Previous Daily Low||1842.94|
|Previous Weekly High||1818.35|
|Previous Weekly Low||1758.92|
|Previous Monthly High||1813.82|
|Previous Monthly Low||1746.07|
|Daily Fibonacci 38.2%||1857.2|
|Daily Fibonacci 61.8%||1851.75|
|Daily Pivot Point S1||1848.38|
|Daily Pivot Point S2||1834.12|
|Daily Pivot Point S3||1825.31|
|Daily Pivot Point R1||1871.45|
|Daily Pivot Point R2||1880.26|
|Daily Pivot Point R3||1894.52|
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.