Date : 6th Dec 2022
US inflation expectations challenge hawkish hopes from Federal Reserve.
Optimism surrounding China adds strength to XAU/USD recovery.
Gold price (XAU/USD) remains in recovery mode around $1,778 as the US Dollar struggles to keep the week-start upside during early Tuesday. In addition to the greenback’s moves, the technical analysis also favours the bullion buyers to keep the reins even as the markets dwindle pre-Fed blackout of the policymakers.
On Friday, the US Nonfarm Payrolls (NFP) surprised markets by rising to 263K versus 200K expected and an upwardly revised prior of 284K while the Unemployment Rate matched market forecasts and prior readings of 3.7% for November. Following the upbeat data, Chicago Fed President Charles Evans said, “We are probably going to have a slightly higher peak to Fed policy rate even as we slow pace of rate hikes.”
A rejection at the support between 1750-1760 will open the door to 1800-1820.
Recommendation: If price tests 1750-1755 area and hold/bounces back then we can go for a long trade.
If the 1750 level is broken then a short position can be taken with a target of 1710-1715.
Our preference: Long positions above 1.0545 with targets at 1.0585 in extension.
Alternative scenario: Below 1.0545 look for further downside with 1.05204 as targets.
Comment: MA & Bollinger Bands is Bullish.
Opinion published is an intraday view. Green Lines Represent Resistances | Red Lines Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced