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Gold Hangs On To Support At $1,1459.00

gold price
gold price

Gold logs its third winning day for the month of November against the US dollar. XAUUSD slid to a new 14-week low at $1,445.28 during the European session. However, there were not enough bears to keep the precious metal from trading any lower. XAUUSD finished the day at $1,460.02 and it continues to crawl higher in today’s Asian session.

US President Donald Trump’s much-anticipated speech at the Economic Club of New York did not provide bring any surprise to the markets. In fact, he did not provide details about negotiations with China. He only mentioned that trade deal was “close.”

Perhaps we could see more movement in XAUUSD along with other dollar pairs today as inflation data from the US comes out and Fed Reserve Chairman Jerome Powell takes centerstage. At 1:30 pm GMT, the headline CPI figure for October is eyed at 0.3% while the core reading is seen at 0.2%. Then at 4:00 pm, the Fed chair will speak before the Joint Economic Committee.

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Powell to Dictate Gold’s Fate?

Better-than-expected inflation data will likely mean that the gold’s rally will be short-lived. Remember that the Fed has expressed their reluctance to cut rates any more this year. Higher inflation figures would be supportive of the central bank’s less-dovish stance and ease pressures from the Trump administration to ease further.

If Powell echoes his tone in the last Fed statement and focuses on bright spots in the economy, XAUUSD could be on its way to support at the 200 SMA on the daily at $1,392.16. On the other hand, disappointing CPI or a dovish Powell could sent it to resistance at the 100 SMA at $1,477.31 or October highs at $1,515.28.Download our latest quarterly market outlook for our longer-term trade ideas.

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