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Gold Price Forecast: XAU/USD softens as inflation cools, $1,950 in sight

  • Gold is heading back towards $1,950 after suffering a strong rejection from $1,975.
  • Gold’s latest bounce is running into friction after hitting a six-day high.
  • US data indicates that inflation is cooling, threatening XAU/USD’s bullish stance.

Gold bids retreat on Wednesday as buyers fail to hold on to $1,975. The XAU/USD pair started the week with a bullish rejection from $1,940, but Gold is now trading lower heading into the second half of the week.

Money markets are 100% pricing in the possibility that the Federal Reserve (Fed) will not raise rates in December, and investors are pivoting toward expectations of when the U.S. central bank will begin cutting rates. interest.

Signs of cooling of inflation and economic activity in the US are easing the Fed’s expectations; US core Producer Price Index (PPI) figures fell to 2.4% for the year in October from 2.7% previously, and US retail sales also fell to -0.1% in October, an overall decline in retail activity after September’s 0.9% (revised from 0.7%).

XAU/USD Technical Outlook

In the hourly candlesticks, the The 50-hour SMA is showing a mix of short-term momentum, consolidating with the longer moving average near $1,960.

On the daily candles, XAU/USD is bouncing after a bounce off the 200-day SMA and facing initial resistance. The 200-day and 50-day SMAs are consolidating around $1,930 as long-term momentum runs out in XAU/USD, and sellers will look for a breakout of last week’s bid lows near $1,930. while the upper target remains the late October high mark recorded just north of the $2,000 area.

XAU/USD Hourly Chart

XAU/USD Daily Chart

XAU/USD Technical Levels


Latest price today 1960.52
Today Daily Change -3.34
Today’s daily variation -0.17
Today’s daily opening 1963.86
daily SMA20 1972.89
daily SMA50 1924.07
SMA100 daily 1927.94
SMA200 Journal 1935.58
Previous daily high 1971.02
Previous daily low 1943.82
Previous weekly high 1993.18
Previous weekly low 1933.04
Previous Monthly High 2009.49
Previous monthly low 1810.51
Daily Fibonacci 38.2 1960.63
Fibonacci 61.8% daily 1954.21
Daily Pivot Point S1 1948.11
Daily Pivot Point S2 1932.37
Daily Pivot Point S3 1920.91
Daily Pivot Point R1 1975.31
Daily Pivot Point R2 1986.77
Daily Pivot Point R3 2002.51

Source: Fx Street

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