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Gold Prices Trade Higher on Consumer Confidence Miss; US GDP on Tap

Gold prices
Gold prices

XAUUSD saw some volatility in yesterday’s trading. It opened at $1,454.57 and dropped to an intraday low of $1,449.99 before rallying to $1,462.68. Spot gold prices closed at $1,460.99 by the end of Tuesday.

A combination of disappointing US data and risk aversion may have sparked demand for the safe haven asset. Consumer confidence fell for a fourth month in a row when it printed at 125.5 for November from 126.1 last month. It also missed the 126.9 forecast.

Meanwhile, the lack of concrete updates on the US-China trade deal sparked concerns from investors that we may not have any agreement by this year.

With that said, the price of gold in US dollars will likely be dictated by the roster of economic data we have scheduled from the US today. Among them are the US preliminary Q3 2019 GDP, Chicago PMI, and PCE report. Worse-than-expected data could dampen demand for the US dollar and therefore push gold prices higher.

Gold Price Outlook

Connecting the lows from November 26 to yesterday, we can see that XAUUSD is finding support at the rising trend line. If it holds, XAUUSD could test resistance at yesterday’s highs $1,462.63 and $1,463.92 where it previously hit a low on November 15 which coincides with the falling trend line.

On the other hand, better-than-expected US data could push gold prices lower to its November 12 lows at around $1,449.03.Download our latest quarterly market outlook for our longer-term trade ideas.