XAU/USD Current price: $2,576.61
- Mixed United States data and Fed speakers helped US Dollar correct overbought conditions.
- Central bank’s leaders will be on the wires during the American afternoon.
- XAU/USD in a corrective advance that may continue in the near term.
Spot Gold trades around $2,575 a troy ounce, recovering from a fresh multi-week low of $2,536.68 posted during European trading hours. The US Dollar maintained its positive momentum until Wall Street’s opening, reaching once again fresh highs across the FX board.
United States (US) data came in mixed, as the country reported that Initial Jobless Claims shrank to 217K in the week ended November 8, better than the 223K anticipated. However, the October Producer Price Index (PPI) rose by more than expected, reviving inflation-related concerns. Wholesale inflation was up by 0.2% in the month and 2.4% from a year earlier. The core annual reading printed at 3.1%, above the 3% forecast and the previous 2.9%. The latter was upwardly revised from a previous estimate of 2.8%.
Meanwhile, different Federal Reserve (Fed) officials have been on the wires. So far, comments have added nothing new to what the market already knew about monetary policy. Later in the day, the focus will be on Chairman Jerome Powell, due to participate in a panel discussion titled "Global Perspectives" at an event hosted by the Federal Reserve Bank of Dallas. Comments on monetary policy may be limited, but questions about how the upcoming Donald Trump government will affect the central bank’s decision will be at the top of the list.
European Central Bank (ECB) President Christine Lagarde and Bank of England (BoE) Governor Andrew Bailey are also expected to share their thoughts.
XAU/USD short-term technical outlook
The daily chart for XAU/USD shows that it bounced from a bullish 100 Simple Moving Average (SMA) and that the pair develops far below a bearish 20 SMA. At the same time, technical indicators keep heading south near oversold readings, albeit losing their downward strength.
In the near term, and according to the 4-hour chart, the ongoing upward correction seems poised to continue. Technical indicators aim sharply north, albeit still below their midlines. At the same time, the 20 SMA heads firmly lower, currently providing dynamic resistance at around $2,594.20. Finally, the 100 SMA gains downward traction above the 200 SMA, approaching the longer one, usually hinting at a long-lasting bearish trend.
Support levels: 2,548.70 2,536.60 2,522.40
Resistance levels: 2,581.35 2,594.20 2,611.05
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 treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.