Gold Price Outlook Mired by Flattening Slope in 50-Day SMA
The price of gold may give back the advance from the November low ($2537) as it struggles to trade back above the 50-Day SMA ($2668).
Share this:
Gold Price Outlook: XAU/USD
The price of gold appears to be stuck in a narrow range as it holds above the weekly low ($2622), but bullion may give back the advance from the November low ($2537) as it struggles to trade back above the 50-Day SMA ($2668).
Gold Price Outlook Mired by Flattening Slope in 50-Day SMA
The range-bound price action in gold may turn out to be temporary as it continues to hold below pre-US election prices, and the precious metal may no longer reflect the bullish trend from earlier this year amid the flattening slope in the moving average.
Join David Song for the Weekly Fundamental Market Outlook webinar.
David provides a market overview and takes questions in real-time. Register Here
US Economic Calendar
Nevertheless, data prints coming out of the US may sway gold prices as the Federal Reserve pursues a neutral stance, and the US Non-Farm Payrolls (NFP) report may push the central bank to the sidelines as the update is anticipated to show a 200K rise in November.
In turn, little signs of a looming recession may force the Federal Open Market Committee (FOMC) to keep interest rates on hold in December, and the threat of a policy error may prop up the price of gold as the precious metal offers an alternative to fiat-currencies.
With that said, the price of gold may consolidate over the coming days should if defend the weekly low ($2622), but bullion may struggle to retain the advance from the November low ($2537) amid the flattening slope in the 50-Day SMA ($2668).
XAU/USD Price Chart – Daily
Chart Prepared by David Song, Strategist; XAU/USD on TradingView
- The price of gold may continue to track sideways as it holds within the range bound price action from earlier this week, but a close below the $2630 (78.6% Fibonacci extension) to $2660 (23.6% Fibonacci extension) region may push the precious metal back towards $2590 (100% Fibonacci extension).
- Next area of interest comes in around $2550 (61.8% Fibonacci extension), but a close above the $2630 (78.6% Fibonacci extension) to $2660 (23.6% Fibonacci extension) region brings $2730 (100% Fibonacci extension) back on the radar.
- A breach above the November high ($2762) raises the scope for a test of the October high ($2790), with a break/close above $2790 (50% Fibonacci extension) opening up $2850 (61.8% Fibonacci extension).
Additional Market Outlooks
EUR/USD Struggles to Trade Back Above Former Support Zone
GBP/USD Recovery Vulnerable as Bear Flag Formation Takes Shape
USD/CHF Pullback Faces Positive Slope in 50-Day SMA
USD/CAD Defends Post-US Election Rally to Eye November High
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong
Related tags:
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Nasdaq 100 forecast: Alphabet results reignite AI concerns
Disappointing results from a couple of major global technology names have put the AI trade back under scrutiny, with Nasdaq 100 futures falling around 1% after giving up the post-FOMC gains seen overnight. For now, our short-term Nasdaq 100 forecast remains more on the cautious side of things than outright bearish. The index remains close to its record highs and continues to find dip buyers. But could that change soon?
Gold Outlook: Fed credibility takes a hit, but buyers aren't biting
The Fed's inflation-fighting credibility takes another knock, real yields are falling and the dollar is softening. Gold should be flying, yet buyers remain reluctant. What's going on?
Gold Bounces from $4k – Are Bears Finished?
Gold has so far bounced from the $4k level following last week’s sell-off but whether a low is in-place will highly depend on how the Central Bank meetings remaining on the calendar for the rest of this week roll out.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.