Analysis of Gold Prices: XAU/USD Current price at $2,042.45
- The focus shifts to the US Core Personal Consumption Expenditures (PCE) Price Index.
- The US Q3 Gross Domestic Product was downwardly revised from 5.2% to 4.9%.
- XAU/USD maintains the bullish pressure but needs to advance beyond $2,047.90.
Spot Gold experienced a slight recovery and is currently trading above $2,040 per troy ounce. The US Dollar saw some strength earlier in the day due to a decline in market sentiment and poor performance of Wall Street on Wednesday. However, softer US Treasury yields limited the USD’s gains. The Greenback changed direction before the American session opening, following mixed economic data from the United States. Initial Jobless Claims for the week ended December 15 were better than expected at 205K, but the Q3 US Gross Domestic Product (GDP) was lower than the preliminary estimate at 4.9%. These reports had a mixed impact on investors, leading Wall Street to return to a bullish path while government bond yields hit multi-week lows. Currently, the 10-year Treasury note yields 3.87%, while the 2-year note offers 4.34%.
Focus now turns to the US Core Personal Consumption Expenditures (PCE) Price Index to be released on Friday, along with November Durable Goods and the final estimate of the December Michigan Consumer Sentiment Index. The PCE Price Index is expected to show easing price pressures, signaling a potential shift in market sentiment.
XAU/USD short-term technical outlook
An analysis of the daily chart for XAU/USD suggests that there is upward potential as the pair trades near recent highs with intraday pullbacks finding support around a bullish 20 Simple Moving Average (SMA). However, technical indicators lack directional strength, and XAU/USD remains below the $2,047.90 peak.
Looking at the 4-hour chart, XAU/USD is finding intraday support around a bullish 20 SMA, and technical indicators are within positive levels but lack directional momentum.
Support levels: 2,034.20 2,022.50 2,009.10
Resistance levels: 2,047.90 2,065.60 2,076.10
View Live Chart for XAU/USD
Additional insight:
The article discusses the impact of recent economic data on the gold market, highlighting the fluctuating strength of the US Dollar and the potential bullish pressure on XAU/USD. The focus on upcoming US economic indicators and their possible influence on price pressures provides valuable information for traders and investors looking to assess market sentiment and make informed decisions. It will also be interesting to see how the market reacts to the release of the US Core PCE Price Index and if it will confirm the easing of price pressures. This could have a significant impact on the short-term outlook for XAU/USD.
