Gold Price Forecast: XAU/USD struggles around $1,760 as Fed’s rate slowdown poses a double-edged sword


  • 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

XAU/USD

Overview
Today last price 1758.03
Today Daily Change 2.98
Today Daily Change % 0.17
Today daily open 1755.05
 
Trends
Daily SMA20 1715.38
Daily SMA50 1685.27
Daily SMA100 1711.94
Daily SMA200 1799.71
 
Levels
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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