VOT Research Desk
In the early European session, the important resistance level of $1,760.00 is being blocked by the gold price (XAU/USD).
Despite a risk-on mood in the world markets, the precious metal has retested its weekly high of $1,761.05. However, further higher appears to be limited.
Despite the fact that the US economy’s headline inflation rates have undoubtedly showed signs of weakness, the core CPI numbers have not yet manifested any appreciable indicators of deterioration.
Additionally, this week’s data on US durable goods orders showed improvement, which suggests that core inflation will pick up speed soon.
Before deciding on a strategic plan for the December monetary policy meeting of the Federal Reserve (Fed), policymakers must exercise extreme caution because a decision to slow the interest rate hike could have serious consequences.
Gold Technical Analysis
On an hourly basis, the price of gold has shown a sharp recovery after testing the 38.2% Fibonacci retracement at $1,722.00 (which is plotted from the low of November 3 at $1,616.69 to the high of November 15 at $1,758.88).
Following a test of the 20-period Exponential Moving Average (EMA) at $1,754.65, the precious metal has continued to recover.
The Relative Strength Index (RSI) (14) has meanwhile reclaimed the bullish range of 60.00-80.00, indicating further upside is still to come.
