GOLD: Consolidation Around $2033 Amidst Fed Comments and Housing
GOLD: Consolidation Around $2033 Amidst Fed Comments and Housing Data
The gold price has settled in a consolidation phase, hovering around the $2033 area on Wednesday. Despite facing resistance below the $2,050 barrier, the precious metal's trajectory is influenced by the weakened US Dollar (USD) and declining US Treasury bond yields. In a higher timeframe analysis, after a notable pullback to the $1980 support zone, the gold price appears poised for a new bullish impulse.
Key Technical Signals:
Price action currently resides above the 50 Moving Average.
The recent pullback from the $1980 support suggests potential for a new bullish swing.
The initial target for this bullish scenario is set at $2075, with a further extension to $2135.
Market Dynamics:
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee emphasized on Monday that the central bank is not precommitting to imminent interest rate cuts. The recent market expectations for rate cuts are considered inconsistent with the typical functioning of the Fed.
New York Fed President John Williams reinforced the sentiment by stating that discussions about rate cuts are not currently on the table.
Recent Economic Data:
The US Census Bureau's Building Permits data for November revealed a decline to 1.46 million from 1.498 million, falling short of the market consensus at 1.47 million.
Housing Starts for November saw a rise to 1.56 million from 1.359 million, surpassing the market expectation of 1.36 million. The upbeat Housing Starts indicate robust buyer demand, supported by lower mortgage rates.
Amidst these factors, the gold price's consolidation around $2033 reflects a delicate balance between market dynamics, economic indicators, and the potential for a renewed bullish trajectory. Traders and investors will be closely monitoring key levels and indicators as the gold market navigates the evolving landscape.
Our preference
Long positions above 1970.000 with targets at 2075.00 & 2135.00 in extension.
The gold price has settled in a consolidation phase, hovering around the $2033 area on Wednesday. Despite facing resistance below the $2,050 barrier, the precious metal's trajectory is influenced by the weakened US Dollar (USD) and declining US Treasury bond yields. In a higher timeframe analysis, after a notable pullback to the $1980 support zone, the gold price appears poised for a new bullish impulse.
Key Technical Signals:
Price action currently resides above the 50 Moving Average.
The recent pullback from the $1980 support suggests potential for a new bullish swing.
The initial target for this bullish scenario is set at $2075, with a further extension to $2135.
Market Dynamics:
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee emphasized on Monday that the central bank is not precommitting to imminent interest rate cuts. The recent market expectations for rate cuts are considered inconsistent with the typical functioning of the Fed.
New York Fed President John Williams reinforced the sentiment by stating that discussions about rate cuts are not currently on the table.
Recent Economic Data:
The US Census Bureau's Building Permits data for November revealed a decline to 1.46 million from 1.498 million, falling short of the market consensus at 1.47 million.
Housing Starts for November saw a rise to 1.56 million from 1.359 million, surpassing the market expectation of 1.36 million. The upbeat Housing Starts indicate robust buyer demand, supported by lower mortgage rates.
Amidst these factors, the gold price's consolidation around $2033 reflects a delicate balance between market dynamics, economic indicators, and the potential for a renewed bullish trajectory. Traders and investors will be closely monitoring key levels and indicators as the gold market navigates the evolving landscape.
Our preference
Long positions above 1970.000 with targets at 2075.00 & 2135.00 in extension.
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