The US Federal Reserve refrained from making a commitment on its interest rate outlook. Meanwhile, US economic data provided a mixed outlook. Following this, the US Dollar and US Treasury bond yields began to heal their wounds. Under the influence of these developments, the gold price checks the 2,000 dollar threshold and returns. So what route will it follow from now on?
Gold less hawkish applauds Fed and US Treasury statement
cryptokoin.com As you follow from , the yellow metal experienced a good two-way price movement on Wednesday. Ahead of the Fed policy announcements, there was a lull in US Treasury yields. Additionally, the US Dollar has stalled its recovery mode due to mixed market sentiment. During this period, gold moved towards the $ 2,000 level. However, as expected, it changed direction in response to the Fed’s policy inaction. In this move, it tested the $ 1,970 level. Meanwhile, the Fed left its key policy interest rate unchanged at its current range of 5.25%-5.50%.
Fed Chairman Jerome Powell’s press conference and his answers to questions collapsed the US Dollar along with US Treasury bond yields. This then triggered an impressive comeback in the price of gold. Meanwhile, the US Dollar was also negatively affected by mixed economic data, with US ADP private sector employment increasing by 113 thousand in October, below expectations of 130 thousand. In Thursday’s trading so far, investors are weighing the Fed’s interest rate path. However, December and January interest rate hike bets have diminished. Additionally, markets are pricing that the Fed will cut interest rates as early as June next year. Investors are trying to put the Hamas-Israel conflict behind them ahead of the US Nonfarm Payrolls data to be released on Friday.
Gold price technical analysis: ‘Buy the dips’ continues!
Market analyst Dhwani Mehta analyzes the technical outlook for gold as follows. Traders continue to portray a ‘buy the dips’ trade in the gold price as long as the critical static support at $1,963 holds. The 14-day Relative Strength Index (RSI) indicator is above the middle line. Thus, it remains well positioned to see new bullish momentum. Additionally, the 21 and 50-day Simple Moving Averages (SMA) ‘Bullish Cross’ remain in play, along with the 21 and 100-day SMA ‘Bullish Cross’. This adds confidence to the upward potential.
Additionally, the 21-day SMA is awaiting a daily close above the 200-day SMA to confirm another ‘Bullish Cross’. This opens doors to a continuous upward trend. Immediate resistance lies at $1,993, the previous day’s high. Gold price will retest the $2,000 threshold above this. An acceptance above multi-month highs of $2,009 would be critical to reignite the uptrend towards mid-May highs of $2,020. On the downside, failure to resist the strong support at $1,963 will trigger a fresh decline to the psychological level of $1,950. A deeper decline would test the October 19 low at $1,945.
Gold price forecast: Overall bulls are strong!
Gold markets rose slightly during Thursday’s trading session. During this period, gold flirted with the $ 2,000 level for a short time. Technical analyst Christopher Lewis comments on gold’s technical outlook:
The horse market will continue to be very noisy!
The gold price rose slightly during Thursday’s trading session. Thus, we continue to flirt with the $2,000 level. The $2000 level is a big, round, psychologically important number. This level is an area that many people will be interested in. We passed this place several times. For this reason, it may have lost some of its effectiveness. But at the end of the day, it certainly feels like the market is trying to do everything it can to move higher.
If we break below the support candlestick on Thursday, the market will likely continue to move much lower. Perhaps it will reach the 50-Day EMA and of course the $1,950 level. All else being equal, I think there are plenty of buyers at the bottom of this market. So we’ll probably continue to see a lot of noisy behavior. That being the case, and interest rates in America continuing to jump, I predict the gold market will continue to be very noisy.
A market where you continue to buy dips
All else being equal, this means you’ll continue to see a lot of noise. Of course, you have the employment numbers coming out in America on Friday, which will have a big impact. Ultimately, many traders will want to see whether the employment situation slows down or continues to be aggressive and positive, perhaps pushing inflation even higher.
However, the gold price will continue to be noisy. However, it is clear that they are generally on the rise. So I think it’s a situation where you continue to buy the dips. We’ve certainly seen that in the last 48 hours. I also predict that it’s probably only a matter of time before we hit a new high. However, if we break below the 50-Day EMA, it will be very negative. This opens up the possibility of a move towards the 200-Day EMA.