- Gold price is displaying topsy-turvy moves as investors await the release of the US economic data.
- The US GDP is expected to deliver positive growth despite an extreme hawkish environment.
- Advancing core CPI has failed to deliver a decline in demand for durable goods.
Gold price (XAU/USD) is broadly auctioning in a bounded territory as the market participants are awaiting fresh impetus for a one-sided move. The precious metal witnessed mild selling pressure at around $1,670.00 but has rebounded from $1,660.00 and has got back inside the woods. The balanced auction profile is plotted in a range of $1,660.00-1,671.20.
Meanwhile, the US dollar index (DXY) has sensed a mild buying interest of around 109.60 but is still in a rangebound structure. The 10-year US Treasury yields have rebounded marginally after testing waters below the psychological support of 4%. The market mood is extremely quiet as investors have shifted to the sidelines ahead of the US Gross Domestic Product (GDP) and US Durable Goods Orders data.
Despite accelerating interest rates by the Federal Reserve (Fed), the US GDP is expected to report a growth rate of 2.4% in the third quarter of CY2022 vs. a de-growth of 0.6% reported earlier.
Also, the US Durable Goods Orders are expected to outperform by delivering an increment of 0.6% against a drop of 0.2%. It is worth noting that core inflation data is escalating for the past few months and still a progressive demand for durable goods indicate solid demand from households.
Gold technical analysis
Gold prices are oscillating in a Symmetrical triangle that signals a sheer contraction in volatility. An explosion of the volatility contraction pattern will result in wider ticks and heavy volume. Horizontal resistance is placed from October 11 high at $1,684.05.
The 20-period Exponential Moving Average (EMA) at $1,633.16 is acting as major support for the counter.
The Relative Strength Index (RSI) (14) has dropped from the bullish range of 60.00-80.00, however, the upside bias is still solid.
Gold hourly chart
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 stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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.