At the end of the Asian market on Thursday (November 30th), spot gold maintained a slight intraday decline, with gold prices currently trading around $2042 per ounce. Valeria Bednarik, Chief Analyst of FXTree, has recently written an article analyzing the prospects of gold technology.
Bednarik pointed out that the dovish remarks of Federal Reserve officials have weakened demand for the US dollar. Prior to the release of US PCE inflation data, gold consolidated its gains this week.
Bednarik stated that the recent trend of gold suggests that the price of gold may soon return to an upward trend.
At 21:30 Hong Kong time on Thursday, the United States will release the Personal Consumption Expenditure (PCE) Price Index for October. As the most favored inflation indicator by the Federal Reserve, the year-on-year changes in the core PCE price index have a significant impact on policymakers.
According to authoritative media surveys, the PCE price index in the United States is expected to increase by 3.0% year-on-year in October, compared to a 3.4% increase in September. The core PCE price index in the United States is expected to rise by 3.5% year-on-year in October, compared to a 3.7% increase in September.
Bednarik wrote that market participants are currently waiting for inflation data from the United States. The United States will release its core PCE price index for October, which is the Federal Reserve's favorite inflation indicator and is expected to increase by 3.5% year-on-year, lower than September's 3.7%. Other signs of easing price pressure may boost optimism and weaken demand for the US dollar.
Short term technical prospects for gold
Bednarik stated that the gold daily chart shows that bulls are temporarily taking a break, but still controlling the situation. The gold price continues its upward trend above all of its moving averages, while hitting both high and low points with upward movements. At the same time, technical indicators have lost their bullish power and are currently consolidating near overbought data.
Bednarik added that the 4-hour trend chart suggests that gold prices may soon recover their upward trend. The technical indicators have fallen from extremely overbought levels and stabilized above the median line. At the same time, the 20 cycle simple moving average (SMA) maintains its firm bullish slope, far below the current gold price level and above the 100 cycle SMA and 200 cycle SMA.
Bednarik provides the latest key support and resistance levels for gold prices:
Support level: 2035.40 USD/oz; $2021.40 per ounce; 2005.70 USD/oz
Resistance level: $2048.20 per ounce; $2062.90 per ounce; 2074.90 USD/oz
