ADDITIONAL GOLD PRICE (XAU/USD):
FURTHER READING: AUD/USD Price Forecast: Channel Breakout for Bulls to Reign?
Gold prices found their legs in the US sector rising above resistance at the level of $ 2040 / oz. A slightly stronger US dollar deterred gold bulls in the European sector, but continued comments from Fed policymakers regarding rate cuts continued to weigh on the Greenback.
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HELPFUL EFFECTS AND THE EFFECTIVENESS OF THE US DOLLAR
International tensions have been the driving force this week following developments in the Middle East. The Red Sea has become a place of doubt, and it only seems to be getting worse. This leaves Gold in the driver’s seat with more leverage if there is no solution to the ongoing conflict in the Middle East.
The new weakness of the US Dollar has also helped Gold to maintain its high position and continue to advance. Federal Reserve policymakers this week have been busy talking a lot about how much interest rates are expected to see in 2024 and pushing aside the odd comment about keeping track of what’s going on. The only push back in terms of comments came from policymaker Barkin saying he thinks inflation is more serious than the Fed chief.
US Treasury Yields continued their struggles today with 2Y and 10Y yields also benefiting Gold.
US2Y and 10Y Daily chart
Source: TradingView, Chart Prepared by Zain Vawda
US DATA FOR THE FUTURE
US data is ahead with the key print being US PCE data due on Friday. This could have a big impact on US expectations before the end of the year when we also have the final Q3 GDP number.
There is also “more” US Data due to CB consumer confidence and the final Michigan Consumer Sentiment number which should not be a physical problem but a short-term movement that could be erased at the end of the trading session.
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WORK VIEWS
GOLD
Make a technical point of view, Gold is interesting following the recent sell-off that stopped last week when Gold printed an obscure candle. This should give us a sign that we can go beyond this week’s record but beyond that in my opinion seems unlikely.
If the situation stops the daily candle is above the $2040 mark, this could support the run to $2050 and beyond with an important picture to support the issue. However, I feel that a retracement is likely to happen soon with a lot of resistance between the $2050 and $2078 handles which could be a barrier for now.
Key Management Standards:
Resistance levels:
Support rates:
Gold (XAU/USD) Daily Chart – December 19, 2023
Source: TradingView, Chart Prepared by Zain Vawda
IG CLIENT SENTIMENT
A quick look at IG Client Sentiment, Traders Are Longer on GOLD with 60% of traders holding Long positions. Given the Contradictory Views Taken Here at DailyFX, this is a sign that Gold may struggle to make significant gains going forward.
For an in-depth look at Gold’s customer reviews and tips and tricks for using it, download the free guide below.
|
Change it inside |
Length |
Shorts |
HEY |
| Every day | -1% | 7% | 2% |
| Every week | -3% | 10% | 2% |
Written by: Zain Vawda, Marketing Writer DailyFX.com
Connect with and follow Zain on Twitter: @zvawda
