Gold’s bounce gained strength after the latest inflation data as the dollar lost strength and participants expected an earlier pivot by the Fed. $2,000 remains the key psychological resistance, but now there seems to be some possibility for this to be broken, if only temporarily, within the next few weeks.
The price has broken through the dynamic resistance of the 20-day simple moving average and buying volumes remains relatively higher. Crucially, there’s no sign of buying saturation: neither Bollinger Bands nor the slow stochastic signal overbought, with the latter at around 55 actually closer to neutral than overbought.
Thanksgiving in the USA is on Thursday 23 November, so volume for gold might be somewhat lower around then, but the Fed’s statement on 21 November will be watched closely.