- Gold price consolidates intraday gains during three-day uptrend.
- Market sentiment remains positive amid hopes of easy Fed rate hikes, more stimulus from China.
- XAU/USD bulls may struggle amid Thanksgiving Day holiday.
Gold price (XAU/USD) pares intraday gains around $1,753 during the early hours of Thursday morning in Europe. Even so, the precious metal prints a three-day winning streak amid the market’s cautious optimism.
The commodity’s latest pullback could be linked to the consolidation ahead of the European session openings, after witnessing a sluggish Thursday due to the Thanksgiving holiday. Also likely to test the XAU/USD bulls are the Covid fears from China.
However, receding fears of the US Federal Reserve’s (Fed) aggressive rate hikes, especially after the previous day’s Federal Open Market Committee (FOMC) Meeting Minutes, keep the gold buyers hopeful. On the same line are the hopes for Chinese government stimulus and a cut to the People’s Bank of China’s (PBOC) Reserve Requirement Ratio (RRR), as well as hopes of quick recovery from the COVID-19-led grim economic conditions.
Amid these plays, the S&P 500 Futures join firmer Asia-Pacific shares to print mild gains but the Treasury yields are inactive amid the Thanksgiving celebration in the US. Further, the US Dollar Index (DXY) remains pressured towards the monthly low near 105.35, around the weekly low of 105.63 by the press time.
Looking forward, a light calendar and holiday mood in the US could challenge the gold traders but the buyers are likely to keep the reins.
Technical analysis
Although 50-SMA challenges the immediate upside of the Gold price near $1,758, a clear upside break of the one-week-old descending trend line joins bullish MACD signals to keep the buyers hopeful. Also suggesting the XAU/USD’s further advances is the previous day’s U-turn from the 100-SMA.
Hence, the latest pullback could aim for the previous resistance line, around $1,737, and will be less problematic unless the quote stays beyond the 100-SMA level of $1,724.
Following that, the 50% and 61.8% Fibonacci retracement levels of the metal’s November 03-15 upside, respectively near $1,700 and $1,680, could challenge the Gold bears.
Meanwhile, an upside clearance of the immediate 50-SMA hurdle surrounding $1,758 could quickly propel the bullion prices toward the monthly high near $1,787.
In a case where the Gold price refreshes monthly top, highs marked in August around $1,808 will be in focus.
Gold price: Four-hour chart
Trend: Bullish
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 steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.