Gold Price Forecast: XAU/USD consolidates its losses around $1,960 on higher US bond yields

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  • Gold price remains confined around $1,960 on the higher USD and US Treasury bond yield.
  • The anticipation for an FOMC rate hike in the December and January meeting priced at zero.
  • Gold traders will focus on China’s House Price Index, US Initial Jobless Claims.

Gold price (XAU/USD) consolidates its recent losses during the early Asian session on Thursday. The precious metal faces a rejection of $1,975 and currently trades around $1,960. That being said, the rebound of the US dollar (USD) and the higher US Treasury bond yields exert some selling pressure on the gold price.

Meanwhile, the US dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, hovers around 104.40 after bouncing off a 103.98 low. The US Treasury bond yields edge higher, with the 10-year yields standing at 4.53%.

On Wednesday, the US Producer Price Index (PPI) fell 0.5% MoM in October from a rise of 0.4% in September, below the market expectation of a 0.1% rise. The annual PPI figure came in at 1.3% versus 2.2% prior. The Retail Sales dropped by 0.1% in October, against expectations of a fall of 0.3%. The expectations for an FOMC rate hike in December and January meeting priced at zero, and the market anticipates that the central bank will begin cutting interest rates in the middle of 2024.

Additionally, the stronger Chinese data could cap gold's downside, as China is the world's largest gold producer and consumer. China's House Price Index for October on Thursday will be in focus.

Moving on, the US Initial Jobless Claims for the week ending November 10 will be released. Traders will also take cues from the Fed officials' speeches, including John Williams, Christopher Waller, Lisa Cook, and Loretta J. Mester. These events could give a clear direction to the gold price.

 

XAU/USD

Overview
Today last price 1960.7
Today Daily Change -3.16
Today Daily Change % -0.16
Today daily open 1963.86
 
Trends
Daily SMA20 1972.89
Daily SMA50 1924.07
Daily SMA100 1927.94
Daily SMA200 1935.58
 
Levels
Previous Daily High 1971.02
Previous Daily Low 1943.82
Previous Weekly High 1993.18
Previous Weekly Low 1933.04
Previous Monthly High 2009.49
Previous Monthly Low 1810.51
Daily Fibonacci 38.2% 1960.63
Daily Fibonacci 61.8% 1954.21
Daily Pivot Point S1 1948.11
Daily Pivot Point S2 1932.37
Daily Pivot Point S3 1920.91
Daily Pivot Point R1 1975.31
Daily Pivot Point R2 1986.77
Daily Pivot Point R3 2002.51

 

 

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