Gold Price Forecast: XAU/USD could gather bullish momentum on a ‘Santa rally’
Gold price moved up and down in a wide range throughout last week. XAU/USD could gain traction on a 'Santa rally', FXStreet’s Eren Sengezer reports.
Risk perception could influence XAU/USD's action
“The Conference Board will release the Consumer Confidence Index data for December on Wednesday. In November, the one-year inflation rate expectation component of the survey rose to 7.2% from 6.9% in October. Another increase in that component should help the US T-bond yields edge higher and weigh on XAU/USD and vice versa.”
“Ahead of the weekend, the US Bureau of Economic Analysis will publish the PCE Price Index figures for November. On a monthly basis, Core PCE inflation is forecast to rise by 0.4%. If the monthly figure falls below the market consensus, Gold could gain traction given the market feedback to soft CPI figures. On the other hand, a stronger-than-forecast monthly Core PCE inflation should have the opposite effect and weigh on XAU/USD.”
“Market participants will pay close attention to risk mood. Following the dismal performance of Wall Street’s main indexes, investors could look to take advantage of low prices, opening the door for the infamous ‘Santa rally.’ In case major equity indices in the US start pushing higher, XAU/USD will gather bullish momentum.”
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
