XAUUSD Finally the price is ready to go up!

13 בנוב׳ 2023

The price of gold (XAU/USD) has dropped to approximately $1,940 and faces further decline due to several challenges. Factors include the absence of significant tensions in the Middle East, hawkish statements from Federal Reserve Chair Jerome Powell, and uncertainty preceding the release of the US Consumer Price Index (CPI) data for October on Tuesday. Investors are closely monitoring the upcoming US inflation data, which is expected to provide insights into the Federal Reserve's monetary policy for its final 2023 meeting in December. Despite the potential for persistent inflation data leading to a December interest rate hike, markets generally anticipate the Fed to maintain unchanged rates. Jerome Powell and colleagues emphasized an ongoing commitment to curbing inflation, with Powell expressing uncertainty about the current interest rates' adequacy. St. Louis Fed interim President Kathleen O'Neill Paese supported Powell's stance, cautioning against ruling out further rate hikes. The subdued appeal for gold is also attributed to the lack of a significant escalation in the Israel-Palestine conflict. The US Dollar Index (DXY) faces pressure, and there's anticipation that the Fed might initiate a rate-cutting cycle in mid-2024, as projected by economists at Morgan Stanley. Technical analysis indicates that the gold price is declining toward $1,930, with near-term demand impacted by various challenges, and the correction extending close to the 50-day Exponential Moving Average (EMA) at $1,940. The next support level is expected near the 200-day EMA at approximately $1,915.