Gold price receives new offers and reverses some of the overnight fall.
During the Asian session on Thursday, the gold price (XAUUSD) draws some dip-buying. And reverses a portion of the previous day’s retracement decline from the monthly top. A two-day-old US Dollar (USD) recovery move from its lowest level since August 31 reached on Tuesday stalls near the 100-day Simple Moving Average (SMA). As predictions that US interest rates have peaked rise. This is the case. A fresh move lower in US Treasury bond yields underpins the Greenback. While acting as a tailwind for the non-yielding yellow metal.
However, the precious metal remains below the psychological level of $2,000 per ounce. This, together with prior failures ahead of the $2,010 horizontal barrier, calls for some caution before initiating new bullish wagers around the Gold price ahead of a very small trading session following the US Thanksgiving holiday. Nonetheless, dovish Fed (Fed) forecasts may continue to operate as a tailwind for the XAUUSD, implying that any major corrective dip may still be viewed as a buying opportunity and is more likely to be restricted.
Market Movers: The gold price regains positive traction and attracts support. as a result of renewed USD weakness
The development of new selling surrounding the US Dollar helps the gold price regain positive traction during Thursday’s Asian session.
The hawkish FOMC minutes-inspired USD recovery has stalled. As investors anticipate that the Federal Reserve (Fed) would not raise interest rates further.
Policymakers maintained their commitment to keeping rates higher for longer. And tightening policy further if progress in managing inflation falters.
The current market price, on the other hand, predicts that the US central bank will begin decreasing interest rates by May 2024.
Bets that the Fed will stop rising interest rates encourage new USD selling and remain supportive.
Meanwhile, dovish Fed views overshadowed Wednesday’s better-than-expected US labor market. And consumer confidence data.
The number of Americans filing new claims for jobless benefits decreased even further. Previous week, falling to 209K, the lowest level in more than a month.
According to the University of Michigan’s consumer sentiment survey. US consumers’ inflation expectations climbed for the second month in a row in November.
Other US figures reveal that orders for long-lasting US manufactured goods declined more than expected in October. Indicating that economic demand is declining.
Lighter trading volumes due to the US Thanksgiving holiday. As well as repeated failures ahead of the $2,010 barrier, call for caution from bullish traders.
