Gold Price Forecast: XAU/USD gains momentum below $2,040, eyes on the Chinese data

Gold price trades in positive territory near $2,035 for the third consecutive day on the weaker USD.
The dovish comments from the Federal Reserve (Fed) boost USD-denominated gold.
World Bank said that China's economy would slow down next year, with annual growth dropping to 4.5% from 5.2% this year.
China’s Industrial Production and Retail Sales will be due ahead of the US PMI data.

Lallalit Srijandorn FXStreet

Gold price (XAU/USD) extends the rally during the early Asian trading hours on Friday. The softer US Dollar (USD) and lower US Treasury bond yield boost the yellow metal. The gold price currently trades around $2,035, gaining 0.02% on the day.

Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD against a weighted basket of currencies used by US trade partners, drops below the 102.00 mark. The Treasury yields edge lower, with the 10-year yield falling to 3.92%

The dovish comments from the Federal Reserve (Fed) drag the US Dollar (USD) lower and benefit USD-denominated gold. On Wednesday, the Federal Open Market Committee (FOMC) decided to keep the benchmark overnight borrowing rate in a targeted range between 5.25% and 5.5%. Additionally, the committee’s dot-plot projection foresees three rate cuts in 2024, or half of what the markets had priced in 2024.

Data from the Census Bureau revealed on Thursday that US Retail Sales grew 0.3% in November from a 0.2% drop in October, better than the market expectation of 0.1%. The upbeat data suggests that the Fed is not likely to cut rates as quickly and as much as the markets now have priced in. However, the data failed to lift the Greenback against its rivals.

Apart from this, the World Bank said in a report released on Thursday that China's economy would slow down next year, with annual growth dropping to 4.5% from 5.2% this year, despite a recent recovery fueled by investments in factories and construction, as well as increased demand for services. The outlook is subject to considerable downside risks and highlights the need for government support to improve confidence in the economy.

Looking ahead, market players will monitor China’s Industrial Production and Retail Sales for November, which are expected to improve. Later on Friday, the US S&P Global PMI, Industrial Production, and NY Empire State Manufacturing Index will be released. Traders will take cues from these figures and find trading opportunities around the gold price.

XAU/USD

Overview
Today last price	2038.71
Today Daily Change	14.71
Today Daily Change %	0.73
Today daily open	2024

Trends
Daily SMA20	2010.99
Daily SMA50	1970.62
Daily SMA100	1941.76
Daily SMA200	1953.14

Levels
Previous Daily High	2024.39
Previous Daily Low	1973.13
Previous Weekly High	2144.48
Previous Weekly Low	1994.71
Previous Monthly High	2052.03
Previous Monthly Low	1931.67
Daily Fibonacci 38.2%	2004.81
Daily Fibonacci 61.8%	1992.71
Daily Pivot Point S1	1989.96
Daily Pivot Point S2	1955.91
Daily Pivot Point S3	1938.7
Daily Pivot Point R1	2041.22
Daily Pivot Point R2	2058.43
Daily Pivot Point R3	2092.48

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

EUR/USD struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.