Gold prices continue to find acceptance above the $2000/oz a step to far. Yesterday saw an aggressive push above the resistance level only foe the Daily Candle to close back below the psychological level. Another attempt today was met with some strong bearish pressure as Gold surrendered its daily high to trade around $1993/oz at the time of writing.
US DATA AND DOLLAR INDEX (DXY) RECOVERY
The Fed minutes did little to excite markets yesterday largely due to the recent spate of US data showing positive signs. However, the overall mood remains a bit more tentative following hawkish comments from ECB and BOE policymakers keeping market participants on edge.
Of more importance however has been the recent bounce in both US Treasury Yields and the US Dollar Index finding support. This has allowed Gold bears an opportunity to pounce and keep Gold prices from exploding above the $2000/oz mark.
A mixed day in terms of US Data today with Durable Goods Orders coming in below forecast for November with October being downgraded to 4% as well. Another sign that the strong demand which has been prevalent In the US in 2023 may be coming to an end. Michigan Consumer Sentiment beat forecast but came in much lower than the October print, continuing a renewed downward trend which began following the July print of 71.6. A sign that pessimism around the US economy still exists.
Now with the US Thanksgiving Holiday tomorrow we have no high impact US data releases for the rest of the week. Taking that into account we could see some volatility as market participants take profit and reposition ahead of the break. Alternatively, we could see Gold limp toward the end of the US session as liquidity begins to thin.