Gold Price Trends and Federal Reserve Insights

11 nov 2023

The downward trend in gold prices persisted after the opening of the U.S. market, with XAU/USD holding near $1,940, marking a four-week low. Despite subdued demand for U.S. dollars, gold is set to conclude the week with significant losses. On the daily chart, there is a new attempt by bulls as the XAU/USD pair seeks to surpass the 23.6% Fibonacci retracement level of the ascent from $1,810.41 to $2,009.34, currently positioned at $1,962.20. Examining the 4-hour chart, XAU/USD faced selling pressure around the downward 20-period SMA, slipping below the flat 100-period SMA. A rise above this indicator could stimulate buyer interest, leading to further intraday gains. Meanwhile, technical indicators on this time frame are pointing upward within negative levels. The U.S. dollar initially showed strength in the first half of the day but reversed course after the U.S. market opening. Consequently, XAU/USD bounced from the weekly low of $1,944.71 to trade above $1,960. Richmond Federal Reserve Bank President Thomas Barkin provided an optimistic assessment, describing the economy as "notably" healthy and acknowledging progress in addressing inflation. However, he emphasized that the task is not yet complete, citing persistently high inflation. Barkin also expressed the opinion that an economic recession might be less severe than past recessions, highlighting a more balanced labor market. In a separate event, Atlanta Federal Reserve President Raphael Bostic reiterated that the full effects of recent policies are yet to manifest. Let me know what you think, have a great day from Nicola, CEO of Forex48 Trading Academy.