Gold prices have dipped below 2,620.00 USD per troy ounce, signaling a second consecutive session of decline. The value of this precious metal is heavily influenced by US economic indicators and expectations surrounding the Federal Reserve’s monetary policy.
Investors are closely watching the upcoming November US labor market data, which will provide crucial insights into the Federal Reserve’s monetary policy directions. Recent statistics showing an increase in unemployment claims suggest a potential slowdown in the employment sector. This data comes just before the highly anticipated nonfarm payrolls report, which is vital for assessing the health of the US labor market.
The probability of a Fed interest rate cut in December is currently at 70%, with expectations of a 25-basis-point reduction. Such a cut could benefit Gold, as lower interest rates reduce the opportunity cost of holding non-yielding assets like Gold.
Despite a decline in interest in jewelry, China’s investment in Gold remains strong, according to World Bank data, providing fundamental support to Gold prices.
Technical Analysis of XAU/USD
H4 chart: Gold has seen a growth wave, reaching a peak at 2,666.35, followed by a correction to 2,616.60. A new growth impulse towards 2,663.00 is underway, with expectations of a consolidation range forming around this level. If the price breaks upward, it may continue its ascent towards 2,714.00. The MACD indicator supports this bullish outlook, with the signal line near zero and pointing upwards.
H1 chart: Gold has completed a growth impulse to 2,640.00 and is likely to form a narrow consolidation range around this level. An upward breakout could indicate a continuation of the growth impulse to 2,663.00, potentially extending to 2,666.00. The Stochastic oscillator also supports this scenario, with the signal line above 50 and trending upwards towards 80, showing strong upward momentum.
By RoboForex Analytical Department
Disclaimer: Any forecasts mentioned here are based on the author’s opinion and should not be considered trading advice. RoboForex is not responsible for trading results based on the recommendations and reviews provided.