Gold prices saw new buying interest on Friday as investors increasingly believe the Federal Reserve might cut interest rates again in December.
The buyers of XAU/USD aren't really bothered by a small increase in the USD and the overall positive risk appetite.
A breakout from a consolidating trading range could signal the start of more upward movement.
Gold (XAU/USD) has had a tough time keeping its gains from the positive start of the Asian trading session, and it hasn't managed to go above the $4,200 level. It's still below that mark despite some mixed signals from economic data. One big reason for the recent rise is the growing chance that the US Federal Reserve will cut interest rates again in December, which helps gold because it doesn't pay interest. The price went up a bit during the day, and that might be because traders started buying after the price went above the $4,170 to $4,175 range.
Meanwhile, the US Dollar (USD) is trying to keep its recent gain after dropping below its level from the past week, which is making it harder for Gold to rise. Also, the overall positive market mood, due to the possibility of lower US interest rates and the hope for a peace agreement between Russia and Ukraine, is limiting how much Gold can go up. However, the XAU/USD pair is still expected to have a good week and may continue to increase.
Daily Digest Market Movers: Gold stays on the rise as people bet on lower interest rates from the Fed, which helps counter a slight increase in the US dollar, and the overall market mood stays positive.
Recent comments from some Federal Reserve officials that were more on the softer side indicated that another interest rate decrease in December is still possible. Also, the mixed economic data from the US this week didn't change people's expectations much, leading gold prices to reach a two-week high during the Asian trading session on Friday.
In addition, reports say that Kevin Hassett, the White House economic adviser, is likely to become the next Fed Chair. He is expected to follow through on President Donald Trump's demand for much lower interest rates. This development helps counter a slight rise in the US Dollar and also supports the commodity market.
Russian President Vladimir Putin said the updated US plan might be the start of a deal with Ukraine, but only if Ukraine removes its soldiers from regions Russia says belong to it. Putin also said Russia will take control of those areas by force if Ukraine does not agree. Ukraine has said many times that it will not give up any land.
Meanwhile, Kremlin spokesperson Dmitry Peskov warned that reaching an agreement is still far off and that Moscow won't make big compromises. Trump, on the other hand, claimed that an agreement between Ukraine and Russia is almost done. Still, this situation keeps geopolitical risks active and continues to support the safe-haven status of the precious metal.
A key supporting factor is helping to balance a small increase in the US Dollar, which is trying to recover from a low it hit a few weeks ago. Even though there's a generally positive risk appetite in the market, it doesn't weaken the positive outlook for the commodity. This supports the idea that there could be more gains in the near future.
There's no major economic data coming out from the US on Friday that could affect the market, so the XAU/USD pair is mainly influenced by expectations of Fed rate cuts and overall risk appetite. However, the fundamental outlook still shows that the easier path for the commodity is higher.
The recent upward movement shows that the price of gold has broken out of a period of sideways trading, supporting the idea that it's likely to rise in the short term. If buyers continue to push the price above $4,200, it will strengthen the positive outlook and help the metal move closer to its highest level of the month, around $4,245. If the price stays above that level, it could encourage more buyers to enter the market, which may lead to further increases in the price, following the recent upward trend over the past week.
On the other hand, if the price falls below the key support area near $4,175 to $4,170, it might find good support around $4,150. However, if the price breaks below this support, it could drop further to the intermediate support zone around $4,120 to $4,115, heading toward $4,100. If that level is also broken, the price could fall even more to the $4,050 to $4,040 area. This area is important because it includes the 200-period Exponential Moving Average on the 4-hour chart and an upward trend line that started in late October. If the price fails to hold the support at $4,150, the positive outlook could be lost, leading to bigger losses.
The buyers of XAU/USD aren't really bothered by a small increase in the USD and the overall positive risk appetite.
A breakout from a consolidating trading range could signal the start of more upward movement.
Gold (XAU/USD) has had a tough time keeping its gains from the positive start of the Asian trading session, and it hasn't managed to go above the $4,200 level. It's still below that mark despite some mixed signals from economic data. One big reason for the recent rise is the growing chance that the US Federal Reserve will cut interest rates again in December, which helps gold because it doesn't pay interest. The price went up a bit during the day, and that might be because traders started buying after the price went above the $4,170 to $4,175 range.
Meanwhile, the US Dollar (USD) is trying to keep its recent gain after dropping below its level from the past week, which is making it harder for Gold to rise. Also, the overall positive market mood, due to the possibility of lower US interest rates and the hope for a peace agreement between Russia and Ukraine, is limiting how much Gold can go up. However, the XAU/USD pair is still expected to have a good week and may continue to increase.
Daily Digest Market Movers: Gold stays on the rise as people bet on lower interest rates from the Fed, which helps counter a slight increase in the US dollar, and the overall market mood stays positive.
Recent comments from some Federal Reserve officials that were more on the softer side indicated that another interest rate decrease in December is still possible. Also, the mixed economic data from the US this week didn't change people's expectations much, leading gold prices to reach a two-week high during the Asian trading session on Friday.
In addition, reports say that Kevin Hassett, the White House economic adviser, is likely to become the next Fed Chair. He is expected to follow through on President Donald Trump's demand for much lower interest rates. This development helps counter a slight rise in the US Dollar and also supports the commodity market.
Russian President Vladimir Putin said the updated US plan might be the start of a deal with Ukraine, but only if Ukraine removes its soldiers from regions Russia says belong to it. Putin also said Russia will take control of those areas by force if Ukraine does not agree. Ukraine has said many times that it will not give up any land.
Meanwhile, Kremlin spokesperson Dmitry Peskov warned that reaching an agreement is still far off and that Moscow won't make big compromises. Trump, on the other hand, claimed that an agreement between Ukraine and Russia is almost done. Still, this situation keeps geopolitical risks active and continues to support the safe-haven status of the precious metal.
A key supporting factor is helping to balance a small increase in the US Dollar, which is trying to recover from a low it hit a few weeks ago. Even though there's a generally positive risk appetite in the market, it doesn't weaken the positive outlook for the commodity. This supports the idea that there could be more gains in the near future.
There's no major economic data coming out from the US on Friday that could affect the market, so the XAU/USD pair is mainly influenced by expectations of Fed rate cuts and overall risk appetite. However, the fundamental outlook still shows that the easier path for the commodity is higher.
The recent upward movement shows that the price of gold has broken out of a period of sideways trading, supporting the idea that it's likely to rise in the short term. If buyers continue to push the price above $4,200, it will strengthen the positive outlook and help the metal move closer to its highest level of the month, around $4,245. If the price stays above that level, it could encourage more buyers to enter the market, which may lead to further increases in the price, following the recent upward trend over the past week.
On the other hand, if the price falls below the key support area near $4,175 to $4,170, it might find good support around $4,150. However, if the price breaks below this support, it could drop further to the intermediate support zone around $4,120 to $4,115, heading toward $4,100. If that level is also broken, the price could fall even more to the $4,050 to $4,040 area. This area is important because it includes the 200-period Exponential Moving Average on the 4-hour chart and an upward trend line that started in late October. If the price fails to hold the support at $4,150, the positive outlook could be lost, leading to bigger losses.
