Gold prices are showing little movement on Thursday, following sharp losses on Wednesday. In the North American session, the metal is trading at $1184.80. There are no US releases, as US markets are closed for the Thanksgiving holiday.
November has been a dismal month for gold. The metal declined 1.9 percent on Wednesday, dropping below the symbolic level of $1200. Since the US election earlier this month, the dollar has surged, and this has come at the expense of gold, which has plunged 8.1 percent during that period. With a rate hike in December a near-certainty, sentiment towards the dollar should remain high and gold prices could continue to head downwards. However, the uncertainty swirling around Donald Trump’s economic agenda could help the safe-haven metal lick its wounds and move higher in the coming weeks. Trump’s election promises of more spending and less taxes have been vague and we will have to wait for the new Trump administration to unveil a detailed economic platform. Where does this leave the Federal Reserve? The Fed is in favor of gradual rate hikes next year, but this assumes that the US economy continues to strengthen. In testimony before a congressional committee last week, Fed chair Janet Yellen acknowledged the uncertainty created by Trump’s victory and said that the Fed might have to adjust its outlook, based on the new president’s economic policies.
Thursday (November 24)
- There are no US releases on the schedule
XAU/USD for Thursday, November 24, 2016
XAU/USD November 24 at 12:25 EST
Open: 1189.61 High: 1190.95 Low: 1180.20 Close: 1184.80
- XAU/USD has shown limited movement in the Thursday session
- 1174 is a support line
- There is resistance at 1205
- Current range: 1174 to 1205
Further levels in both directions:
- Below: 1174, 1146 and 1130
- Above: 1205, 1223, 1245 and 1279
OANDA’s Open Positions Ratio
XAU/USD ratio is showing gains in short positions. Currently, long positions have a substantial majority (76%). This is indicative of trader bias towards XAU/USD reversing directions and moving to higher levels.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.