Gold expectations: Dollar pressure and the Federal Reserve’s division restrict the yellow metal
Gold prices and Silver faced downward pressure over the past week, with the US dollar rising near its highest levels in 6 months, while the latest round of The Federal Reserve (the US central bank) has little clarity on the timing of cutting interest rates.
The division among members has led "Federal" Transforming the course of monetary policy, investors felt uncertain about the potential move, which strengthened demand for the dollar, and reduced the appetite for non-yielding assets such as gold and silver.
The general scene: An open appetite for risk with a decline in global tensions
This week, investors showed a fairly strong desire to increase risk, as strong corporate profits, improving industrial data, and expectations of more moderate policies from global central banks, contributed to this shift in sentiment. This improvement has caused precious metals to lose some of the momentum that had supported them earlier this month.
Broader geopolitical tensions remain, but their impact on precious metals is still limited, as the recent US proposal to end the war between Russia and Ukraine has reduced gold’s momentum, pushing the dollar higher.
A busy week for US data
With policymakers divided within "Federal" As markets search for confirmation, this week’s economic data is likely to determine the course of The dollar, and thus, will shape the movement of precious metals in the near term.
Traders are now focusing on a data-packed US docket, where the producer price index, retail sales numbers, and consumer confidence index – delayed by the government shutdown.
Later in the week, preliminary data on third-quarter GDP and the personal consumption expenditures price index (the Fed’s preferred inflation gauge) will provide a clearer direction to the price outlook Interest.
Gold Price Forecast
Gold as of today, November 24, is trading around $4,056, stable above the rising trend line that has supported the price since early in the month. Despite the recent rebound, the yellow metal is still unable to breach the $4,088 level, as a combination of previous highs and the 20-day EMA still constitute resistance.
The technical analysis of the platform indicates "FX Empire" In the short term, gold is trying to move towards $4,088 per ounce, and if the price drops below $4,020 it will bring renewed downward pressure.
The 200-day EMA, near $4,020, adds another layer of support, in line with the uptrend line. If it closes above $4,088, this will open the door towards the next level of $4,134. As for a drop below $4,020, it will lead to a decline to the $3,996 and $3,945 levels.
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