Key Highlights
- Gold price is struggling to gain momentum above $1,480 against the US Dollar.
- EUR/USD and GBP/USD are facing an increase in selling pressure.
- UK’s CPI increased 1.5%, while the Euro Zone CPI climbed 1% in Nov 2019 (YoY).
- The US Initial Jobless Claims for the week ending Dec 14, 2019 could decline from 252K to 225K.
Gold Price Technical Analysis
This month, gold price made a couple of attempts to surpass the $1,480 and $1,482 resistance levels against the US Dollar. However, the bulls failed to gain strength, resulting in a few bearish reactions.
The 4-hours chart of XAU/USD indicates that the price is trading in crucial zone between important resistances and supports. On the upside, the $1,480, $1,482 and $1,485 levels are key hurdles for more gains.
A successful close above $1,485 could open the doors for a push towards the $1,500 resistance. The next major hurdle is seen near the $1,520 level. Conversely, there is a strong support near $1,466 and connecting bullish trend line.
If there is a daily close below $1,465 and the 100 simple moving average (4-hours, red), the price could start a major decline. In the mentioned bearish scenario, the price could revisit the $1,455 and $1,450 support levels in the near term.
Overall, gold price is likely preparing for the next major move either above $1,485 or towards $1,450 in the coming sessions.
Looking at EUR/USD, the pair is slowly gaining bearish momentum after it failed to climb above the 1.1150 level. Besides, GBP/USD extended losses and traded below the 1.3150 support.
Economic Releases to Watch Today
- UK Retail Sales for Nov 2019 (YoY) – Forecast +2.1%, versus +3.1% previous.
- UK Retail Sales for Nov 2019 (MoM) – Forecast +0.3%, versus -0.1% previous.
- BoE Interest Rate Decision – Forecast 0.75%, versus 0.75% previous.
- US Initial Jobless Claims – Forecast 225K, versus 252K previous.
