The gold (XAU) price rose by 0.5% on Friday and finished the day above the important 2,000 mark for the first time since 27 October.
XAUUSD
Friday’s trading session was relatively quiet, and the market closed early due to the Thanksgiving holiday. Gold continued to rise as the U.S. Dollar Index (DXY) weakened on expectations that the Federal Reserve (Fed) may be preparing to adopt a dovish monetary policy. Still, the economic data from the U.S. shows a mixed picture. Low consumer spending numbers indicate that the rate increases by the Fed are beginning to affect the economy. However, Friday’s Purchasing Managers Indices (PMIs) were rather strong. Therefore, gold’s next move is unclear. ‘We don’t see either a significant move higher or lower in the short run into next year, and it becomes more certain that the U.S. central bank is willing to cut interest rates and probably cut interest rates significantly before we reach the 2% inflation target,’ said Bart Melek, the head of commodity strategies at T.D. Securities.
Easing tensions in the Middle East hasn’t put a bearish pressure on gold so far. XAUUSD rose strongly during the Asian trading session but failed to consolidate above the 2,018 level and started to decline during the early European session. Today, the economic calendar is uneventful, and only the U.S. New Home Sales data release at 3:00 p.m. UTC may trigger some volatility. ‘Spot gold may extend gains into a range of $2,026 to $2,032 per ounce, as it has pierced above a resistance at $1,999,’ said Reuters analyst Wang Tao.
