XAUUSD

אתמול

XAUUSD have been on a continuous downtrend since the beginning of the week, currently standing at 2561, with expectations to further extend its bearish trend. The critical 2550 level remains a battleground.

Concerns linger over market sentiment amid developments in the United States following Donald Trump's presidential victory... These uncertainties may continue to weigh on gold prices.

All eyes are now on the U.S. October Producer Price Index (PPI). Forecasts suggest an increase in the PPI by 2.3% year-over-year, significantly higher than September's rise of 1.8%. If both CPI and PPI indices continue to rise, the Federal Reserve may be compelled to hike interest rates to curb inflation. This would apply pressure on gold prices as the U.S. dollar strengthens, raising the cost of trading and holding gold.

On the technical side, the battle around the 2550 level persists. However, there is a high chance of a correction amid news-driven volatility, with a potential retest of the 2600-2580 resistance zone before resuming its downward trend. For instance, an Elliott wave impulse could unfold, as suggested by the chart analysis. Gold prices are projected to reach at least 2485, which translates to over 1000 pips from the resistance level.