WHAT MOVES LIES AHEAD OF GOLD?FUNDAMENTAL VIEW
It’s a quiet week on the economic calendar as the holiday spirit takes center stage, but gold remains in focus. What moves lie ahead for the precious metal?
From a fundamental perspective, the FED’s recent 25bps rate cut, paired with a cautious stance on future rate changes, has influenced gold prices. Furthermore, softer U.S inflation data for November has also weakened the dollar and lowered Treasury yields. Hence providing support for gold.
This week, markets will keep an eye on U.S. consumer confidence data later today at 7 PM GMT+4. Tomorrow, December 24, 2024, key releases include Core durable goods, durable goods, new home sales, and the Richmond manufacturing index. On Thursday, the weekly unemployment claims are expected, with a forecast of 218K. These and other economic indicators could impact gold prices, given their inverse relationship with the dollar.
TECHNICAL VIEW
On the daily timeframe, the price is struggling and currently trading below the 50 period EMA at $2,640.493, showing a -28% decrease today after a brief uptick during the Asian session, following significant losses last week.
The price is currently leaning bearish, with a potential target at $2,582.181. If this level is broken, the next support targets could be $2,553.488 and $2,489.954.
Alternatively, if bullish momentum takes over, the price could rise to $2,655.962, followed by $2,722.389 and then $2,787.129.
