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The Gold Price This Week continues its upward momentum for the third consecutive day, buoyed by expectations of a dovish stance from the Federal Reserve. With the US dollar languishing near September’s lows, the precious metal finds substantial support.
Technical Outlook: Resistance and Potential Upside
The current upward trend could encounter resistance around the $1,980 region after surpassing the overnight swing high at $1,970-1,971. A further surge might propel the gold price towards $1,991-1,992 and ultimately the significant $2,000 mark, signifying a bullish sentiment and potential for further gains.
Gold Price This Week Support Levels
However, a corrective pullback could find support near the $1,950-1,949 range, followed by crucial support zones such as the 200-day SMA around $1,935 and the 100- and 50-day SMAs converging near $1,928-1,925. A breach of these supports might trigger a decline towards the $1,900 mark.
Read More: Gold Price Today Shockingly Remains Below $1,990
Fundamental Dynamics at Play
The XAU/USD remains just below the weekly high of $1,970, primarily backed by the ongoing weakness in the US dollar, fueled by growing expectations of the Federal Reserve halting interest rate hikes.
The prevailing risk-on sentiment, bolstered by a dovish Fed outlook and substantial liquidity infusion by China’s central bank. Therefore, could limit Gold Price This Week gains. Additionally, signs of easing tensions in the Middle East prompt cautious optimism, impacting gold’s safe-haven appeal.
USD/NOK Declines After Soft US CPI Figures
The USD/NOK witnessed a notable decline, reaching lows not seen in over a month at 10.887, marking a 1.70% loss. The weaker US dollar stemmed from softer-than-expected October inflation figures, triggering risk-on sentiment across markets.
Fed’s Outlook & Gold Price This Week Expectations
Soft Consumer Price Index (CPI) figures, remaining unchanged monthly with a 3.2% year-on-year increase. Moreover, the Core CPI at 4% YoY, reduce the likelihood of another Fed rate hike. Markets anticipate potential rate cuts by May 2024. Thus, awaiting further cues from the upcoming Producer Price Index (PPI) and Retail Sales figures from October.
USD/NOK Technical Analysis
The USD/NOK’s daily chart indicates a bearish trend with sellers gaining momentum. While short-term indicators reflect bearish sentiments, broader scale indicators suggest ongoing dominance by bullish forces, despite recent selling pressure.
