Gold Price Forecast: XAU/USD gains traction below $2,000, US housing data eyed

Gold price gains momentum around $1,982 on the lower US Treasury bond yields.
The markets have priced in the end of the tightening cycle and expect a rate cut in the middle of 2024.
Gold traders will focus on the US housing data on Friday.

Lallalit Srijandorn FXStreet

Gold price (XAU/USD) extends its rally during the early Asian trading session on Friday. The uptick of the precious metal is bolstered by the fall in US Treasury bond yields. As of writing, the gold price is trading near $1,982, up 0.06% on the day.

Meanwhile, the US dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, consolidates around 104.40. The US Treasury bond yields edge lower, with the 10-year yields standing at 4.44%.

The markets have priced in the end of the tightening cycle and expect a rate cut in the middle of 2024, which exerts some selling pressure on the US Dollar (USD) and boosts gold prices. The weekly US Initial Claims rose by 231,000, the highest level in nearly three months. While continuing jobless claims increased to their highest level since 2022, rising 1.865 million from 1.883 million in the previous reading. The US Industrial Production dropped 0.6% m/m in October from a 0.1% rise in the previous month, below the market consensus.

On Wednesday, US President Joe Biden and Chinese President Xi Jinping agreed to restore military-to-military interactions and collaborate on efforts to curb fentanyl production. That being said, the renewed tension between the US-China, the world’s largest economy, could lift the yellow metal further.

Moving on, the US Building Permit and Housing Start will be due on Friday. The Housing Starts are estimated to drop from 1.358 million to 1.35 million, while the Building Permits are forecast to drop from 1.471 million to 1.45 million. Traders will also take cues from the figures and find a trading opportunity around the gold price.

XAU/USD

Overview
Today last price	1982.62
Today Daily Change	1.71
Today Daily Change %	0.09
Today daily open	1980.91

Trends
Daily SMA20	1973.82
Daily SMA50	1926.15
Daily SMA100	1929.19
Daily SMA200	1936.55

Levels
Previous Daily High	1988.02
Previous Daily Low	1956.56
Previous Weekly High	1993.18
Previous Weekly Low	1933.04
Previous Monthly High	2009.49
Previous Monthly Low	1810.51
Daily Fibonacci 38.2%	1976
Daily Fibonacci 61.8%	1968.58
Daily Pivot Point S1	1962.31
Daily Pivot Point S2	1943.7
Daily Pivot Point S3	1930.85
Daily Pivot Point R1	1993.77
Daily Pivot Point R2	2006.62
Daily Pivot Point R3	2025.23

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.

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