Gold prices rose today due to a weaker dollar as seen on the Dollar Index (DXY) and lower Treasury yields. Traders are looking to U.S. economic data of this week for clues on the Federal Reserve's monetary policy outlook. Benchmark U.S. 10-year bond yields remained near a five-month low ,around 3.87% at the time of this report being written, while the dollar was down against its rivals.
‘ The focus is now on the U.S. GDP report which is expected to increase, jobless claims data which also is expected to slightly increase and the November core PCE index report where the market consensus is that it will remain stable at 0.2%’ said Antreas Themistokleous, an analyst at Exness.
On the technical point of view the price has found sufficient support around the $1,980 price area and has since traded in a bullish momentum. The 50 day moving average is trading above the 100 day moving average validating the bullish trend while the Stochastic is approaching extreme overbought levels which could possibly point to the direction of a correction in the following sessions. If the bulls are proven to be stronger than the bears then the first area of possible resistance might be seen around the $2,060 price area which consists of the 38.2% of the daily Fibonacci retracement level as well as the psychological resistance of the round number.