Key Highlights
- Gold price is trading above the $1,450 and $1,455 support levels against the US Dollar.
- EUR/USD and GBP/USD remained in the positive zone.
- The US CPI increased 2.1% in Nov 2019 (YoY), more than the 2.0% forecast.
- The US Initial Jobless Claims for the week ending Dec 07, 2019 could rise from 203K to 213K.
Gold Price Technical Analysis
This past week, gold price struggled to surpass the $1,480 resistance area against the US Dollar. As a result, the price corrected lower below $1,470, but it remained well bid above $1,455.
The 4-hours chart of XAU/USD indicates that the price is trading nicely above the $1,450 and $1,455 support levels. On the upside, an initial resistance is near the $1,474 level.
Besides, the 61.8% Fib retracement level of the last decline from the $1,484 high to $1,458 low is also near the $1,472 level.
If the price continues to rise, it could revisit the $1,480 resistance area. An intermediate resistance is near the 200 simple moving average (4-hours, green) and the 76.4% Fib retracement level of the last decline from the $1,484 high to $1,458 low.
If there is a successful break above $1,480 and $1,485, the price could continue to rise towards the $1,500 and $1,510 resistance levels.
Conversely, the price may perhaps decline below the $1,455 and $1,450 support levels. In the mentioned bearish case, the price may even decline towards the $1,420 level.
Fundamentally, the US Consumer Price Index for Nov 2019 was released by the US Bureau of Labor Statistics. The market was looking for an increase of 2.0% in the CPI compared with the same month a year ago.
However, the result was above the market forecast, as the US CPI increased 2.1% in Nov 2019 (YoY), well above the last reading of 1.8%. Looking at the yearly change, the CPI increased 0.3%, less than the last 0.4%.
The report added:
The index for all items less food and energy rose 0.2 percent in November, the same increase as in October. Along with the indexes for shelter, for medical care, and for recreation, the indexes for used cars and trucks and for apparel also rose in November.
Overall, gold price is likely to revisit the $1,480 resistance area. Besides, EUR/USD and GBP/USD are trading in a positive zone above 1.1040 and 1.3100 respectively.
Economic Releases to Watch Today
- German Consumer Price Index for Nov 2019 (YoY) – Forecast +1.1%, versus +1.1% previous.
- German Consumer Price Index for Nov 2019 (MoM) – Forecast -0.8%, versus -0.8% previous.
- ECB Interest Rate Decision – Forecast 0%, versus 0% previous.
- US Initial Jobless Claims – Forecast 213K, versus 203K previous.
