Gold Price Forecast: XAUUSD near multi-week highs around $1,680

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  • Gold attracts some buying on Monday, although it lacks bullish conviction.
  • The renewed selling bias around the dollar offers support for XAUUSD.
  • High US bond yields and risk appetite limit the rise of the yellow metal.

The Prayed reverses a drop at the beginning of the European session to the $1,667 area and rises to a new daily high in the last hour, although it lacks follow-up. The XAUUSD is currently around the $1,678-1,680 zone, just below a multi-week high reached in reaction to mixed US monthly employment data on Friday.

The US NFP report showed that the economy added 261,000 new jobs in October, compared to the 200,000 expected. However, this figure was much lower than the previous month’s, revised upwards, figure of 315,000. In addition, the unemployment rate rose to 3.7% from 3.5% in September and average hourly earnings slowed to 4.7% year over year in October from the previous 5%. Data feeds the Speculation that the Federal Reserve could slow the pace of future rate hikes and put some pressure on the dollar for the second day in a row. This, in turn, offers some support to dollar-denominated gold, although a combination of factors prevents XAUUSD from rising significantly.

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The markets, meanwhile, continue assessing the possibility of a Fed interest rate hike of at least 50 basis points in December. This remains supportive of elevated US Treasury yields and acts as a headwind for underperforming gold. In addition, the good recovery in US equity futures also helps keep the precious metal safe haven. Even from a technical perspective, XAUUSD has, so far, had difficulty overcoming a descending resistance line resistance which extends from the August high, which warrants caution for aggressive bulls.

Therefore, it will be prudent to wait for a sustained break through the trendline hurdle before positioning for any appreciating move in gold. Traders also seem reluctant and may prefer to stay on the sidelines ahead of Thursday’s release of the latest US consumer inflation figures. Meanwhile, US bond yields could influence dollar price dynamics, in the absence of relevant economic data to move the market. Aside from this, traders will take cues from the broader risk sentiment to take advantage of some short-term opportunities around gold.

gold technical levels

XAU/USD

Overview
last price today 1678.65
today daily change -2.37
Today Daily variation in % -0.14
Daily opening today 1681.02
Trends
daily SMA20 1651.98
daily SMA50 1675.13
daily SMA100 1720.45
daily SMA200 1805.43
levels
Previous daily high 1682.49
Previous Daily Low 1628.8
Previous Weekly High 1682.49
Previous Weekly Low 1616.69
Previous Monthly High 1729.58
Previous Monthly Low 1617.35
Daily Fibonacci of 38.2%. 1661.98
Daily Fibonacci at 61.8% 1649.31
Daily Pivot Point S1 1645.72
Daily Pivot Point S2 1610.41
Daily Pivot Point S3 1592.03
Daily Pivot Point R1 1699.41
Daily Pivot Point R2 1717.79
Daily Pivot Point R3 1753.1
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Source: Fx Street

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