Gold prices stabilized around $2,690.00 per troy ounce on Friday, with a 1% drop in the previous session due to investors evaluating the latest US economic data. US manufacturing prices surged in November, raising concerns about inflation surpassing the 2025 target. Additionally, initial claims for unemployment benefits hit a two-month high, highlighting risks in the US labor market.
Investors are anticipating a 25 basis points rate cut by the US next week, with potential future cuts in 2025. A Federal Reserve rate cut is a positive signal for gold as it reduces the opportunity cost of holding the precious metal, making it more attractive for traders.
Technical Analysis of XAU/USD
The Gold market is consolidating around $2,675.55 and could see a growth wave towards $2,726.26. A corrective movement to $2,670.66 is expected, followed by a potential rise to $2,743.85. The MACD indicator supports this bullish scenario, showing upward momentum.
On the H1 chart, Gold is correcting towards $2,670.66, with a possible rise to $2,697.77 before a decline to the same level. A new growth wave to $2,735.70 is anticipated, with a further extension to $2,743.85. The Stochastic oscillator suggests continued upward potential.
Analysis: Gold prices remain stable amidst US economic data, with potential for a rate cut by the US. Technical analysis shows a bullish scenario for XAU/USD, supported by indicators signaling upward momentum. Investors should monitor future economic developments for trading opportunities.
By RoboForex Analytical Department