Gold Price Forecast: XAU/USD trades lower near $2,040 on downbeat China data


Share:
  • Gold price faces downward pressure as China reported softer data.
  • China’s Manufacturing and Non-Manufacturing PMI declined to 49.4 and 50.02, respectively.
  • US Dollar gained ground as the US GDP Annualized increased by 5.2% against the 4.9% prior.

Gold price hovers lower around $2,040 per troy ounce during the Asian session on Thursday. The yellow metal has retreated from the six-month high it reached at $2,052 on Wednesday. The pullback in Gold's price suggests a shift in market sentiment or profit-taking after the recent rally.

Gold encountered challenges as the US Dollar (USD) saw a modest rebound. The US Dollar Index (DXY) struggles to sustain its gains, hovering around 102.80 at the moment. The US Dollar (USD) successfully halted its four-day losing streak in the previous session, thanks to stronger-than-expected US Gross Domestic Product Annualized data released by the US Bureau of Economic Analysis. The US GDP Annualized increased by 5.2% during the third quarter, surpassing the previous reading of 4.9% and exceeding the market consensus of 5.0%.

Furthermore, Cleveland Federal Reserve (Fed) President Loretta Mester expressed that monetary policy is currently in a favorable position to evaluate upcoming data on the economy and financial conditions. While Mester did not rule out the possibility of further rate hikes, she emphasized that the decision to implement additional hikes would data-dependent.

The NBS Manufacturing PMI for November declined to 49.4 from the previous reading of 49.5, falling short of the expected increase to 49.7. Moreover, the Non-Manufacturing PMI contracted to 50.02, below the expected 51.1 and the previous reading of 50.6. These data points indicate a contraction in both manufacturing and non-manufacturing activities in China, which could impact global economic sentiment and contribute to a stronger US Dollar, putting pressure on Gold prices.

Looking ahead, the United States is scheduled to release crucial economic data later in the North American session. Significant data include the Initial Jobless Claims for the week ending on November 24, with an expected increase to 220,000 from the previous 209,000. Additionally, the Core Personal Consumption Expenditure (PCE) Price Index for October will be released, with expectations of a slowdown in consumer inflation. The anticipated annual rate is expected to decrease from 3.7% to 3.5%.

XAU/USD: additional important levels

Overview
Today last price 2043.22
Today Daily Change -1.45
Today Daily Change % -0.07
Today daily open 2044.67
 
Trends
Daily SMA20 1983.09
Daily SMA50 1941.14
Daily SMA100 1936.29
Daily SMA200 1943.63
 
Levels
Previous Daily High 2052.03
Previous Daily Low 2035.41
Previous Weekly High 2007.63
Previous Weekly Low 1965.51
Previous Monthly High 2009.49
Previous Monthly Low 1810.51
Daily Fibonacci 38.2% 2045.68
Daily Fibonacci 61.8% 2041.76
Daily Pivot Point S1 2036.04
Daily Pivot Point S2 2027.42
Daily Pivot Point S3 2019.42
Daily Pivot Point R1 2052.66
Daily Pivot Point R2 2060.66
Daily Pivot Point R3 2069.28

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD deteriorates further and retargets the 2024 low

AUD/USD deteriorates further and retargets the 2024 low

Further weakness saw AUD/USD retreat to new two-week lows in the 0.6490/85 band against the backdrop of the stronger Dollar and the absence of a positive surprise from the RBA’s inflation gauges.

AUD/USD News

EUR/USD puts the 1.0800 region to the test

EUR/USD puts the 1.0800 region to the test

EUR/USD came under renewed downside pressure and revisited the area of multi-session lows near the 1.0800 region amidst further strength in the Greenback and increasing prudence ahead of key data releases on Thursday.

EUR/USD News

Gold extends its consolidation around $2,030

Gold extends its consolidation around $2,030

Gold holds above $2,030 in the second half of the day on Wednesday. The benchmark 10-year US Treasury bond yield corrects lower after rising above 4.3% on Tuesday, allowing XAU/USD to cling to modest daily gains ahead of Thursday's PCE inflation data.

Gold News

Bitcoin price could go into discovery mode now that BTC OTC markets hit six-year low

Bitcoin price could go into discovery mode now that BTC OTC markets hit six-year low

Bitcoin (BTC) price is trading with a bullish bias, recording milestones this week as institutional money floods the crypto markets. Galaxy CEO Mike Novogratz says BTC is now in price discovery phase now the bulk of US wealth has easy access.

Read more

Moment of truth in FX PCE tomorrow

Moment of truth in FX PCE tomorrow

During today's TradeGATEHub Live Trading session, Coach Dale discusses the significance of closing above inter-day spikes in the DXY. He also provides an update on the Rising Wedge pattern in the Dow, as well as his critical threshold for 10-year yields. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures