- Gold price will end the week around $1,920, after hitting a multi-month high near $1,938.
- US economic data on Thursday was mixed, showing the job market is far from portraying a next recession.
- Gold Price Analysis: The 100 DMA crossed above the 200 DMA, further consolidating the bullish bias.
the price of gold pulls back from multi-month highs before the weekend on a rallying US dollar (USD) and high US Treasury yields, despite recession fears surrounding the US economy USA. Therefore, the pair XAU/USD It pulls back from the daily highs of $1,937.91 and trades at $1,926.42, down 0.28%.
Gold remains weak on rising US bond yields and strong USD
US stock markets opened green, reflecting investor optimism. Big US tech companies report earnings, keeping investors optimistic. Layoffs announced by Microsoft, Amazon and Google Alphabet grab the headlines ahead of the release of US real estate data. Existing Home Sales is forecast to fall to 3.96 million, from 4.09 million last month, while the month-on-month reading is estimated to improve to -5.4%, from November’s -7.7% drop.
Meanwhile, last week’s initial jobless claims were published on Thursday’s economic calendar, which stood at 190,000, below the 214,000 expected, and reached its lowest level since September. In other data, US housing starts fell to 1.382 million year-over-year versus 1.358 million estimates, and building permits fell to 1.333 million versus 1.365 million forecast.
The Dollar Index (DXY), which measures the value of the US dollar (USD) against a basket of currencies, rose 0.38% to 102.447, taking the shine off Gold heading into the weekend. Additionally, the US 10-year Treasury yield is yielding 3.459%, gaining six and a half points, a headwind for XAU/USD.
Aside from this, Fed speakers continued their hawkish rhetoric that portrayed St. Louis and Cleveland Fed presidents Bullard and Mester on Wednesday each saying rates should be “slightly above “of 5%. Federal Reserve Vice Chairman Lael Brainard said: “Even with the recent moderation, inflation remains high, and policy will need to be tight enough for some time to ensure inflation returns to 2%.” That being said, with the Fed’s Brainard being one of the doves of the Federal Reserve Board, he reiterates the US central bank’s stance to hold for longer.
Gold Price Analysis: Technical Outlook
From a technical point of view, the uptrend of XAU/USD is intact, further cemented by the crossing of the 100-day EMA at $1,786.83, above the 200-day EMA at 1,782, $90. However, it could suffer a deeper pullback as the Relative Strength Index (RSI) pulls back from overbought territory and the Rate of Change (RoC) breaks above its highest reading of the week. Key resistance levels for XAU/USD are at $1,937.51, followed by $1,950, before $2,000. On the other hand, the demand zones for Gold would be $1,920.77, followed by $1,900.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
