- The XAU/USD sees a boost, ascending to the $2000 level.
- The US Dollar weakened after mixed S&P PMIs.
- Higher US yields may limit the upside of the metal.
The XAU/USD is finding traction in Friday's session, capitalising on mixed S&P PMIs and a weakening US Dollar. The pair, commonly recognised as the price of gold in US dollars, is exchanging hands, trading towards $2,000 and seeing 0.30% gains.
In early November, economic activity within the US private sector displayed slight growth, as indicated by the S&P Global Composite PMI, which maintained its position at 50.7. However, the Manufacturing PMI experienced a decline, falling to 49.4 from 50.0 in the same period, placing it in contraction territory. On the other hand, the Services PMI saw a modest improvement, rising to 50.8 from 50.6. Notably, employment in the US service and manufacturing sectors decreased in November for the first time since mid-2020, influenced by sluggish demand and elevated costs.
As a reaction, markets seem to be weighing the weakening of the manufacturing sector, boosting dovish bets on the Federal Reserve (Fed), which may explain the weakening of the US dollar. However, US Treasury yields are rising and may limit the upside momentum of the yellow metal. The 2-year rate rose to 4.95% while the 5 and 10-year yields to 4.50% and 4.48%.
Considering that the Fed remains data-dependent, the US will report Gross Domestic Product (GDP) revisions from Q3 next week as well as Personal Consumption Expenditures (PCE) figures from October, which will likely impact the USD’s price dynamics.
XAU/USD levels to watch
Evaluating the daily chart, the Relative Strength Index (RSI) is positioned near overbought conditions, manifesting a dominant buying momentum but a potential reversal. In addition, the Moving Average Convergence Divergence (MACD) shows a positive trend with its rising green bars, indicating augmenting bullish momentum.
Contributing to the consolidated bullish narrative is the position of the XAU/USD relative to its Simple Moving Averages (SMAs). Positioned above the 20, 100, and 200-day SMAs, it advances the narrative of bullish control in the broader trend.
Support Levels: $1,970 (20-day SMA),$1,940 (200-day SMA), $1,930 (100-day SMA).
Resistance Levels: $2,015, $2,030, $2,050.
XAU/USD daily chart
-638364391194791044.png)
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 retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.