Zerologic
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The increase in gold prices was limited, profit-taking due to easing geopolitical risks.
The price of gold on Friday experienced a recovery, but profit-taking resulted in a gold sell-off bringing the price down. Gold drew a bull candle with a high of $2665, a low of $2633 close at $2650.
The price of gold last week tried to recover after the drop on November 25. However, gold's upward movement was limited by being swallowed by the previous bearish candlestick. The reduction in geopolitical risk tension between Israel and Hezbollah, which reached a ceasefire agreement, was one of the reasons gold fell 3% daily.
On the other hand, the weakening USD provided support for gold, helping XAU/USD maintain its gains in the middle of the week. The USD Index (DXY) fell to 105.615, extending its previous decline.
According to the US Census Bureau Durable Goods Orders increased by 0.2% MoM in October, missing market expectations of 0.5%. Meanwhile, the US Department of Labor announced that Initial Jobless Claims fell to 213k in the week ended November 23 from 215k in the previous week. The Personal Consumption Expenditure (PCE) Price Index, the Federal Reserve's preferred gauge of inflation, rose 2.3% year-on-year, up from 2.1% in September and line with market consensus, while Annual core PCE inflation edged up to 2.8% from 2.7%.
Today investors will focus on US PMI data, ISM Manufacturing PMI is expected to rise to 47.7 from the previous 46.5.