Gold Price Forecast: XAU/USD Insights
The price of gold is currently trending upward, breaking above the initial range for December. As it creates a sequence of higher highs and lows, the precious metal might continue to reflect November's trading patterns due to the moderation observed in the 50-Day Simple Moving Average (SMA), currently positioned at $2669.
Gold Price Surpasses December Opening Range
This week, gold prices have gained momentum significantly, reaching a new monthly high of $2692. This suggests a potential revival of the bullish trend observed earlier in the year, as gold remains a preferred asset against fiat currencies amidst ongoing economic fluctuations.
Upcoming economic data from the US will likely have a pivotal effect on gold prices. The Consumer Price Index (CPI) is projected to rise to 2.7% in November from 2.6% in the previous month, whilst the core inflation rate is expected to hold steady at 3.3% during the same period.
US Economic Indicators
Should inflation remain persistent, this may lead to an internal disagreement within the Federal Reserve regarding policy direction. Such uncertainties might support gold prices as Federal Reserve Chairman, Jerome Powell, and colleagues navigate a neutral monetary policy framework.
Thus, while gold may continue its recent upward trend, it might also need to contend with the flattening slope represented by the 50-Day SMA at $2669—especially if prices do not maintain their current levels following the US elections.
XAU/USD Daily Price Chart
Chart analysis prepared by market analysts.
- Gold has hit a new monthly high of $2692, maintaining its upward trend from earlier in the week. A critical resistance level to watch is $2730 (100% Fibonacci extension), above which the recent November high at $2790 may come into view.
- A successful breakout above $2790 (50% Fibonacci extension) could lead to a target near $2850 (61.8% Fibonacci extension). However, failure to gain sufficient momentum past $2730 might confine gold within the November trading range.
- Conversely, if gold fails to remain above the $2630 (78.6% Fibonacci extension) to $2660 (23.6% Fibonacci extension) zone, we may see a retraction back to $2590 (100% Fibonacci extension). Additionally, a drop below $2550 (61.8% Fibonacci extension) could signify a move towards the November low of $2537.
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