In Wednesday's trading session, the XAU/USD Gold spot price witnessed a strong downward trend, currently trading at approximately $2,030. Buyers seem to be taking a step back to consolidate gains as the price stands at highs since May.
Market participants continue to be on edge as they await the release of the US Personal Consumption Expenditures (PCE) figures from November, much favored by the Federal Reserve as a key indicator of inflation, due on Friday. The outcome may have an impact on the metals price as it could confirm the markets bet on sooner rate cuts by the Fed in 2024.
Meanwhile, due to the Fed’s dovish shifts, US yields are weak, providing a cushion to the yellow metal as falling US Treasury bond yields tend to ease the opportunity cost of holding non-yielding metals. The 2-year rate is hovering at 4.40%, while the 5 and 10-year yields are at 3.85% and 3.84% (low since July) respectively.
The daily Relative Strength Index (RSI), despite its negative slope, remains in positive territory while the Moving Average Convergence Divergence (MACD) histogram lays out red bars which reaffirm an underlying buying pressure; however, their flat nature implies a pause in momentum.
Zooming out, the Simple Moving Averages (SMAs) further implicate a bullish stance. Specifically, the pair is notably above the 20,100 and 200-day SMA, suggesting that the buyers still dominate the larger time frames.
Support Levels: $2,020 (20-day SMA), $2,000, $1,980.
Resistance Levels: $2,040, $2,050, $2,070.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.