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.
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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
