Steady Gold Price Amid Indicators and Economic Data
Based on daily chart observations, the Gold price maintains its upward trend as the 14-day Relative Strength Index (RSI) retreats from the overbought region while staying above the midpoint. This suggests a potential continuation of the upward movement.
The Golden Cross, marked by the crossover of the 50-day Simple Moving Average (SMA) and the upward-trending 200-day SMA, adds further confidence to the likelihood of an extended price increase.
To establish a sustainable upward trend toward the all-time high of $2,144, Gold needs to close the day above $2,100. Prior to that, Gold buyers need to find acceptance above the psychological barrier of $2,050.
On the flip side, if the corrective decline persists, a robust support level is visible around $2,000, below which the 21-day SMA at $1,994 could rescue Gold buyers. Furthermore, the round figure of $1,990 will face challenges.
In a broader sense, Gold is attempting to bounce back from $2,050 at the beginning of Tuesday after a sharp $120 drop from the new all-time high of $2,144 set in the Asian trading session on Monday. Gold is seeking support from the latest weakness in the US Dollar, along with the bond yields, as focus shifts to the high-impact US JOLTS Job Openings and ISM Services PMI data releasing on Tuesday.
The significant retreat in Gold prices on Monday is not surprising after the relentless upward movement. Investors had to readjust expectations regarding the potential interest rate cuts by the US Federal Reserve (Fed), and profit-taking activities occurred ahead of a series of crucial US employment data starting from Tuesday.
The US JOLTS Job Openings data, published at 15:30 GMT, is predicted to show at 9.35 million, indicating signs of a slowdown in the US job market in September. Further sluggishness in the US employment sector could affirm the expectation of Fed rate cuts in March, hastening the decline of the US Dollar and US bond yields. The market continues to price in about a 60% chance of the Fed cutting interest rates in March.
Meanwhile, the market awaits the policy announcement from the Reserve Bank of Australia (RBA), where the central bank is expected to keep the interest rate at 4.35% in the December meeting. A dovish tone in RBA's forward guidance may still support Gold prices.
Gold traders also strongly support the Caixin China Composite PMI data, reaching 51.5 in November, surpassing the expected 50.8 and the previous figure of 50.4. Improved business momentum in China, the world's leading consumer of gold, could be a positive signal for Gold prices.
Additionally, Gold prices will closely monitor geopolitical developments in the Middle East for potential new trading advantages.
The Golden Cross, marked by the crossover of the 50-day Simple Moving Average (SMA) and the upward-trending 200-day SMA, adds further confidence to the likelihood of an extended price increase.
To establish a sustainable upward trend toward the all-time high of $2,144, Gold needs to close the day above $2,100. Prior to that, Gold buyers need to find acceptance above the psychological barrier of $2,050.
On the flip side, if the corrective decline persists, a robust support level is visible around $2,000, below which the 21-day SMA at $1,994 could rescue Gold buyers. Furthermore, the round figure of $1,990 will face challenges.
In a broader sense, Gold is attempting to bounce back from $2,050 at the beginning of Tuesday after a sharp $120 drop from the new all-time high of $2,144 set in the Asian trading session on Monday. Gold is seeking support from the latest weakness in the US Dollar, along with the bond yields, as focus shifts to the high-impact US JOLTS Job Openings and ISM Services PMI data releasing on Tuesday.
The significant retreat in Gold prices on Monday is not surprising after the relentless upward movement. Investors had to readjust expectations regarding the potential interest rate cuts by the US Federal Reserve (Fed), and profit-taking activities occurred ahead of a series of crucial US employment data starting from Tuesday.
The US JOLTS Job Openings data, published at 15:30 GMT, is predicted to show at 9.35 million, indicating signs of a slowdown in the US job market in September. Further sluggishness in the US employment sector could affirm the expectation of Fed rate cuts in March, hastening the decline of the US Dollar and US bond yields. The market continues to price in about a 60% chance of the Fed cutting interest rates in March.
Meanwhile, the market awaits the policy announcement from the Reserve Bank of Australia (RBA), where the central bank is expected to keep the interest rate at 4.35% in the December meeting. A dovish tone in RBA's forward guidance may still support Gold prices.
Gold traders also strongly support the Caixin China Composite PMI data, reaching 51.5 in November, surpassing the expected 50.8 and the previous figure of 50.4. Improved business momentum in China, the world's leading consumer of gold, could be a positive signal for Gold prices.
Additionally, Gold prices will closely monitor geopolitical developments in the Middle East for potential new trading advantages.
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