- Gold extends corrective recovery from 4.5-month low.
- Virus updates, trade/political news probe US stimulus hopes.
- Thanksgiving Day can challenge the momentum traders amid a light calendar elsewhere.
Gold prices probe intraday high near $1,812, up 0.30% on a day, during the early Thursday. In doing so, the yellow metal marks the highest gains in a week while trying to bounce off the lowest since mid-July, marked on Tuesday, amid mixed catalysts.
Upbeat market sentiment led by the US President-elect Joe Biden’s welcome couldn’t last long as the downbeat data from American joined the 60 million global coronavirus (COVID-19) cases, not to forget extended partial lockdowns in Germany, to challenge the bulls.
Also on the negative side are chatters surrounding the inabilities by the US and China to deliver only half of the trade promises in the last 10 months. Further, the Trump administration’s sanctions on the four firms from Russia and China also challenge the market sentiment. On the same line, Chinese state media warns Biden over his comments on Taiwan and adds to the fears of trade/political tension among the world’s top two economies.
It’s worth mentioning that Brexit fears are back on the table with fisheries continue to drag the talks.
Meanwhile, the vaccine hopes remain on the table and the Fed is also ready to do what’s needed, though not for now, per the latest FOMC minutes.
Amid these catalysts, S&P 500 Futures rise 0.17% while stocks in Japan, per Nikkei 225, are up 0.40%. Further, Australia’s ASX 200 and New Zealand’s NZX 50 are mildly offered by press time.
Given the US holiday and a light calendar elsewhere, gold buyers are likely to struggle in extending the latest recovery moves.
Technical analysis
Pin bar on the daily (D1) chart above 200-day SMA suggests further bounce off $1,798 key support. Though, September lows around $1,848/49 challenge the gold buyers.
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
AUD/USD corrects toward 0.6850, awaits US PCE Price Index
AUD/USD is falling back toward 0.6850 in Friday's Asian trading, reversing from near 19-month peak. A tepid US Dollar bounce drags the pair lower but the downside appears called by the latest Chinese stimulus measures, which boost risk sentiment ahead of US PCE data.
USD/JPY pares gains toward 145.00 after Tokyo CPI inflation data
USD/JPY is paring back gains to head toward 145.00 in the Asian session on Friday, as Tokyo CPI inflation data keep hopes of BoJ rate hikes alive. However, intensifying risk flows on China's policy optimism support the pair's renewed upside. The focus shifts to the US PCE inflation data.
Gold price consolidates below record high as traders await US PCE Price Index
Gold price climbed to a fresh all-time peak on Thursday amid dovish Fed expectations. The USD languished near the YTD low and shrugged off Thursday’s upbeat US data. The upbeat market mood caps the XAU/USD ahead of the key US PCE Price Index.
Avalanche rallies following launch of incentive program for developers
Avalanche announced the launch of Retro9000 on Thursday as part of its larger Avalanche9000 upgrade. Retro9000 is a program designed to support developers with up to $40 million in grants for building on the Avalanche testnet.
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.