Market Analytics and Technical Considerations
XAU/USD Price at this time: $1,742.11
Discouraging US private sector activity led to a decline in the value of the dollar.
The minutes of the FOMC meeting may contain hints about the Fed’s decision in December.
Despite widespread dollar weakening, the XAU/USD pair rebounded, although further gains look improbable.
Spot gold bounced back after continuing its weekly slide to $1,725.65 per troy ounce despite a general decline in the value of the dollar. The shiny metal trades around the $1,740 price range, basically unchanged for a second day, but has failed to draw in investors. The US dollar experienced some moderate pressure during Asian trading hours as demand for riskier assets increased as US indexes’ bullish outlook transferred to their international equivalents.
Following the release of the first round of US data, the dollar made an attempt to recover as Durable Goods Orders increased by 1% MoM in November but Initial Unemployment Claims unexpectedly increased to 240K, worse than the 225K market expectations. Nonetheless, after the announcement of unimpressive S&P Global PMIs, speculative interest changed its mind. The US manufacturing index fell to 47.6, a new low for the past 30 months, or below the forecasted level of 50. The indicator for services activity in the private sector came in at 46.1, its lowest level in three months, which was worse than expected.
The FOMC Meeting Notes are now being awaited by the financial markets, along with any indication of what the US Federal Reserve may decide to do at its December meeting on monetary policy.
Short-term technical prognosis for the XAU/USD price
The 23.6% retracement of the most recent daily increase, or $1,745.50, is a Fibonacci level that the XAU/USD pair continues to trade under. The brilliant metal is strengthening above its 20 and 100 SMAs on the daily chart, with the smaller one ready to cross the larger one. Technical indicators, however, lack a distinct directional strength and continue to read at overbought levels.
The 4-hour chart indicates that the upswing appears to be somewhat restrained in the near future. The upside is restricted by a bearish 20 SMA, which is currently underneath the indicated Fibonacci resistance. The 100 SMA is getting close to a crucial static support level, the 38.2% retracement of the aforementioned rise, which is located at about $1,720.75, while the lengthier moving averages retain their positive slopes below the present level.
Support levels: 1,733.00 1,720.75 1,708.30
Resistance levels: 1.745.50 1,758.60 1,771.10