GOLD | Perk Up, Palladium in Freefall, Key Levels
US DOLLAR FORECAST – 
XAUUSD
- The U.S. dollar, as measured by the DXY index, rallies on soaring U.S. bond yields
- Powell’s hawkish comments reinforce the greenback’s advance
- This article examines Gold prices from a technical standpoint, analyzing key levels to watch in the coming days
The US dollar started off the day quietly but gained momentum later due to higher yields and weak demand for US government securities. Fed Chair Powell's comments during an IMF panel also boosted the dollar. He expressed concerns about achieving their inflation target and mentioned the possibility of higher rates in the case of stronger economic growth. As a result, the DXY index rose by almost 0.4% for the day.
Powell's comments imply the central bank is not fully convinced the rate hikes are finished. Another hike may be possible next month or in January, especially if financial conditions continue to improve as they have been since late October.
Traders should stay alert to economic data releases, especially the October consumer price index survey next Tuesday. Analysts predict a 0.1% rise in headline CPI and a 0.3% increase in the core gauge, both maintaining yearly rates.
The Fed's sensitivity to incoming information and concerns about inflation make any upward deviation in official data from consensus estimates likely to increase bond yields and support the case for higher interest rates for a longer period. This would have a positive impact on the US dollar, but a negative impact on gold.
XAUUSD TECHNICAL ANALYSIS
Earlier this week, gold faced a setback when it failed to surpass the $2,010/$2,015 range. However, prices have rebounded after finding support around the 200-day moving average. Thursday saw a modest advance and if gains continue, resistance is at $1,980. Further strength would bring focus back to $2,010/$2,015.
On the other hand, if the bears stage a comeback and propel prices downward, the first area to keep an eye on is $1,945. Although gold might find support in this region during a retracement, a breakdown could pave the way for a slump towards $1,920. Below this threshold, the spotlight turns to the psychological $1,900 level.
XAUUSD - The U.S. dollar, as measured by the DXY index, rallies on soaring U.S. bond yields
- Powell’s hawkish comments reinforce the greenback’s advance
- This article examines Gold prices from a technical standpoint, analyzing key levels to watch in the coming days
The US dollar started off the day quietly but gained momentum later due to higher yields and weak demand for US government securities. Fed Chair Powell's comments during an IMF panel also boosted the dollar. He expressed concerns about achieving their inflation target and mentioned the possibility of higher rates in the case of stronger economic growth. As a result, the DXY index rose by almost 0.4% for the day.
Powell's comments imply the central bank is not fully convinced the rate hikes are finished. Another hike may be possible next month or in January, especially if financial conditions continue to improve as they have been since late October.
Traders should stay alert to economic data releases, especially the October consumer price index survey next Tuesday. Analysts predict a 0.1% rise in headline CPI and a 0.3% increase in the core gauge, both maintaining yearly rates.
The Fed's sensitivity to incoming information and concerns about inflation make any upward deviation in official data from consensus estimates likely to increase bond yields and support the case for higher interest rates for a longer period. This would have a positive impact on the US dollar, but a negative impact on gold.
XAUUSD TECHNICAL ANALYSISEarlier this week, gold faced a setback when it failed to surpass the $2,010/$2,015 range. However, prices have rebounded after finding support around the 200-day moving average. Thursday saw a modest advance and if gains continue, resistance is at $1,980. Further strength would bring focus back to $2,010/$2,015.
On the other hand, if the bears stage a comeback and propel prices downward, the first area to keep an eye on is $1,945. Although gold might find support in this region during a retracement, a breakdown could pave the way for a slump towards $1,920. Below this threshold, the spotlight turns to the psychological $1,900 level.
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