- Gold price is facing hurdles while surpassing the immediate hurdle of $1,760.00.
- Investors see Fed’s rate hike slowdown as a double-edged sword as core CPI has not shown a meaningful slowdown yet.
- An improvement in US Durable Goods Orders poses a bullish filter for the core CPI data.
Gold price (XAU/USD) is facing barricades around the critical resistance of $1,760.00 in the early European session. The precious metal has refreshed its weekly high at $1,761.05, however, further upside seems capped despite a risk-on tone in the global markets.
The USD Index (DXY) is auctioning around its weekly support at 105.65 amid a sheer decline in safe-haven’s appeal. Meanwhile, S&P500 futures are behaving like a dead cat amid the holiday mood in the United States on account of Thanksgiving Day.
No doubt, the headline inflation numbers in the US economy have displayed signs of a decline, however, the core CPI numbers have not shown meaningful signs of slippage yet. Also, the US Durable Goods Orders data that was released this week showed improvement, which is a sign of acceleration in core inflation ahead.
Federal Reserve (Fed) policymakers are required to take significant precautions before making a strategic plan for December monetary policy meeting as a decision to a slowdown in the interest rate hike could be a double-edged sword for them.
Gold technical analysis
On an hourly scale, Gold price has displayed a steep recovery after testing the 38.2% Fibonacci retracement (plotted from November 3 low at $1,616.69 to November 15 high at $1,758.88) at $1,722.00. The precious metal has extended its recovery after testing the 20-period Exponential Moving Average (EMA) at $1,754.65.
Meanwhile, the Relative Strength Index (RSI) (14) has reclaimed the bullish range of 60.00-80.00, which indicates more upside ahead.
Gold hourly chart
|Today last price||1758.03|
|Today Daily Change||2.98|
|Today Daily Change %||0.17|
|Today daily open||1755.05|
|Previous Daily High||1758.68|
|Previous Daily Low||1749.26|
|Previous Weekly High||1786.55|
|Previous Weekly Low||1747.6|
|Previous Monthly High||1729.58|
|Previous Monthly Low||1617.35|
|Daily Fibonacci 38.2%||1755.08|
|Daily Fibonacci 61.8%||1752.86|
|Daily Pivot Point S1||1749.98|
|Daily Pivot Point S2||1744.91|
|Daily Pivot Point S3||1740.56|
|Daily Pivot Point R1||1759.4|
|Daily Pivot Point R2||1763.75|
|Daily Pivot Point R3||1768.82|
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