- The XAU/USD edged significantly higher towards the $2,005 level, with a 1.40% rally.
- US Treasury yields are declining, and the US dollar is trading soft, allowing the metal to advance.
- The November FOMC minutes will be closely watched.
In Tuesday's trading session, the Gold spot price XAU/USD experienced a remarkable surge, breaking the $2,000 barrier and seeing a 1.40% increase. This notable performance was primarily driven by the downdraft in US yields, often seen as the opportunity cost of holding non-yielding metals and by a weak US dollar.
Today’s highlight will be the Federal Open Market Committee (FOMC) November’s minutes to be released later in the session, where investors will look for further clues on forward guidance. As for now, inflation in the US has shown signs of cooling down, as well as the labor market, while economic activity also saw signs of weakening. On the Federal Reserve (Fed) side, officials kept a cautious tone, warning that if needed, further tightening would be implemented.
In line with that, the bond market could see some volatility if investors detect any fresh clues on the Fed’s next steps. Meanwhile, the 2,5 and 10-year rates declined to 4.86%, 4.40% and 4.39% which benefited the yellow metal.
XAU/USD Levels to watch
The indicators on the daily chart reflect the dominance of buying momentum. In particular, the Relative Strength Index (RSI), nearing overbought conditions, indicates that bullish sentiment is driving the market. This surge in buying pressure is underscored by the Moving Average Convergence Divergence (MACD), which displays rising green bars, alluding to increased buying traction in the short term.
This is reinforced by the XAU/USD placement above the 20,100, and 200-day Simple Moving Averages (SMAs), suggesting that buyers have taken control over the broader market outlook.
Support Levels: $1,980, $1,960, $1,935.
Resistance Levels: $2,010, $2,030, $2,050.
XAU/USD Daily chart
-638361802517122340.png)
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 Weekly Forecast: Sellers gain confidence alongside the Fed Premium
The EUR/USD pair fell towards a fresh two-month low of 1.0900, finishing the second consecutive week in negative though little changed at around 1.0940.
Read full analysis
GBP/USD Weekly Forecast: Pound Sterling stays vulnerable ahead of UK inflation data Premium
The Pound Sterling (GBP) booked the second straight weekly loss against the US Dollar (USD), sending the GBP/USD pair to the lowest level in a month below 1.3050.
Gold Weekly Forecast: XAU/USD holds above key support area after bearish action to start week Premium
Gold (XAU/USD) declined sharply in the first half of the week but regained its traction after coming within a touching distance of $2,600.
Bitcoin Weekly Forecast: Will BTC decline further?
Bitcoin’s (BTC) price fell over 6% at some point this week until Thursday, extending losses for a second consecutive week, as it faced rejection from a key resistance barrier.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.