- Gold price is hovering around $1,800.00 as investors await US ISM Services PMI data.
- The upbeat US NFP data has failed to fade the odds of the Fed’s rate hike slowdown.
- Solid United States Services New Orders could drive inflation expectations higher.
Gold price (XAU/USD) faces immense pressure to conquer the round-level resistance of $1,800.00 in the early Tokyo session. The precious metal is expected to display more gains and may extend towards a fresh three-month high at $1,824.63 as the upbeat US Nonfarm Payrolls (NFP) failed to fade the risk appetite theme.
The US Dollar Index (DXY) is looking to re-test the previous week’s low around 104.40 as the market participants believe that solid employment generation in November cannot fade expectations of a slowdown in the interest rate hike pace by the Federal Reserve (Fed). Also, the 10-year US Treasury yields have dropped below 3.50% and are not getting any intermediate cushion.
The economic catalyst investors are awaiting for further guidance is the United States ISM Services data, which will be released on Monday. The economic data is seen higher at 55.6 vs. the prior release of 54.4. Apart from that, the catalyst which will impact Gold prices is the ISM Services New Orders Index data. The economic data is expected to land higher at 58.5, which indicates robust demand by households that may provide a cushion to inflation ahead.
Gold technical analysis
On an hourly scale, the Gold price has picked up decent demand after a correction to near November 15 high at $1,777.32. The yellow metal aims to reclaim a three-month high at around $1,805.00. The Gold price has scaled above the 20-period Exponential Moving Average (EMA) at $1,795.90 after sensing support from the 50-EMA around $1,790.00, which indicates that the short-term trend has tilted north.
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
AUD/USD consolidates the rebound above 0.6450
AUD/USD clings to recovery gains above 0.6450 in the Asian session on Monday. A pause in the US Dollar uptrend supports the pair but the further rebound appears eluisive amid renewed geopolitical tensions between Russia and Ukraine. Fedspeak is next in focus.
USD/JPY regains 154.00 and beyond amid BoJ's Ueda-led volatility
USD/JPY has recaptured 154.00 in Asian trading on Monday after BoJ Governor Kazuo Ueda's comments injected volatility around the Japanese Yen. Ueda offered no clues on a likely December interest rate hike, weigihing heavily on the Yen while triggering a big USD/JPY jump.
Gold bounces off key support on renewed Russia-Ukraine geopolitical risks
Gold price (XAU/USD) extends its rebound to test $2,600 early Monday, snapping a six-day losing streak. The latest uptick in Gold price could be attributed to rsurfacing Russia-Ukraine geopolitical tensions after US authorizes Ukraine to use long-range US weapons to strike inside Russia.
Dollar rally 2024: Epic bull run or dangerous bubble?
Dear, The US dollar is surging—how high can it go? Is this unstoppable growth or a bubble about to burst? Discover the 5 key factors fueling this rally Watch, learn, and get ready for what’s next! .
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
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.