XAUUSD for the first day of the week, the uptrend is still safer

Nov 27, 2023

- At the start of Asian trading today, prices corrected sharply as markets expected the Federal Reserve to end its rate hike cycle and the US dollar index continued to fall. In the first half of this year, prices rose until 2018, but then reversed. The reason for this week's reversal in gold prices was the warming of US GDP. The news from the US is not strong today, so we can enter the sale and wait for the price to rise further from 2018 to 2023. If the price closes below $2000, sellers will have even more reason to come back.

Last week, gold surpassed a key psychological threshold of $2,000 an ounce, marking its second straight week of gains. But experts expect this to become a "fixed" line of resistance if the US Federal Reserve continues to maintain its tight monetary stance.
Analysts expect U.S. monetary policy to be a key driver of prices, as the conflict between Israel and Hamas shows signs that the precious metal's appeal as a safe-haven asset is waning. We will finally take action in the precious metals market in the near future. Economists predict the Fed could start cutting interest rates in early 2024, after which gold prices could climb well above $2,000 an ounce. While gold is unlikely to rise above $2,000 in the near term, many analysts don't expect there to be much downside risk as the precious metal is supported by seasonal factors. There are indications that demand for gold will increase significantly between now and the end of the year. Specifically, the MKS PAMP report found that over the past five years, gold has increased by about 2.7% from Thanksgiving to the end of the year.
Experts say the current headwind for gold remains rising bond yields. Therefore, the market may be sensitive to this week's important news coverage, including US Q3 GDP data. Although the U.S. economy is expected to grow strongly in the third quarter, there are growing concerns that economic activity will slow in the fourth quarter.
Markets are also closely watching statements from central bank officials this week, including Federal Reserve Chairman Jerome Powell. Mr. Powell has been blunt in his recent comments that interest rates will remain in a limited range because inflation is uncontrolled.