The price of Gold is stable following a downturn in the crucial week. The US currency does not help China-related risk aversion, and the Fed is still determining its next move. As pivot negotiations intensify, US inflation data and Fedspeak will be important for the near-term trajectory of the XAUUSD.
As we enter Monday’s European session, the intraday decline in the price of Gold (XAUUSD) is still just 0.5 percent as it moves up to $1,670.
The Gold captures the market’s uncertainty ahead of the crucial US Consumer Price Index (CPI) data for October, due for release on Friday, despite the recent discussions about the Fed’s turn and the mixed US employment report. However, it should be noted that the risk-off sentiment sparked by China puts downward pressure on the Gold Price.
To keep the bears optimistic, though, Covid worries from China are added to the dragon country’s dismal October trade figures. A floor is provided for the price of Gold by the prospects of more private investment in the second-largest economy in the world and a decrease in hawkish Fed wagers, particularly in light of Friday’s mixed US employment data for October and mixed Fedspeak.
The S&P 500 Futures reflect the sentiment by printing modest losses and erasing the previous day’s recovery from its lowest point in two weeks. Despite this, US Treasury rates lag behind the previous multi-day highs set.
It should be highlighted that the recent rumors of a stop in the rate rise trajectory of the world’s central banks, supported by the Reserve Bank of Australia’s (RBA) and Bank of Canada’s (BOC) recent accommodative rate hikes, emphasize this week’s US inflation statistics. If the actual readings confirm the pessimistic predictions, the Gold price might see some rebound. The viral problems and geopolitical worries about China and Russia might test the confidence.
The RSI’s reversal from the overbought zone and Gold’s retreat from a three-week-old resistance line teases the XAUUSD bearish lately.
The 200-SMA, which was at $1,660 at the time of publication, has to be broken down to the downside for the sellers to maintain control.
After that, the metal may try many supports at $1,630 and $1,615 before being directed toward the $1,600 mark.
Meanwhile, successful trading above the trend as mentioned above line resistance, close to $1,682 at the latest, might target the $1,700 round figure before attempting to challenge the last monthly top at $1,730.
Price of Gold: 4-hour graph