Gold Choppy Near $1,750 – Quick Daily Outlook - Forex News by FX Leaders
Gold Choppy Near $1,750 - Quick Daily Outlook

Gold Choppy Near $1,750 – Quick Daily Outlook

Posted Monday, November 28, 2022 by
Skerdian Meta • 2 min read

Gold prices fell about half a percent, around $1,750, on Monday, as bears celebrated the first daily decline in five days. The recent decline of the yellow metal XAU/USD could be attributed to the market’s risk-off mindset and the US Dollar’s modest increases.

The Asia-Pacific region’s markets are in the red, led by China, as the dragon nation’s Coronavirus fears increase amid record-high daily infections and demonstrations against the government’s Zero-Covid policy. According to internet speculations, the explanation could be tied to an alleged fire in Shanghai that killed around ten people because they couldn’t flee the building since it was partially closed down.

According to Reuters, “infections surged as hundreds of demonstrators and police battled in Shanghai on Sunday night as protests over China’s severe COVID regulations expanded to numerous cities.” According to the news, “China recorded a fifth consecutive daily record of 40,347 new COVID-19 infections on Nov. 27, of which 3,822 were symptomatic, and 36,525 were asymptomatic.”

XAU/USD

Recent dovish remarks from European Central Bank (ECB) Governing Council Member Gabriel Makhlouf allowed the US Dollar to remain firmer. Nonetheless, the US Dollar Index (DXY) is up slightly at 106.40 as of press time.

The negative performance of the S&P 500 Futures and a five basis point (bps) decrease in US 10-year Treasury bond yields to 3.65% may indicate a risk-off mentality.

Given the negative sentiment, the gold price may fall further. A softer yield, on the other hand, may halt the XAU/USD bears ahead of the important data/events. Among these, a speech by Federal Reserve (Fed) Chairman Jerome Powell and the US monthly employment data for November, due out on Thursday and Friday, will be key for gold dealers to monitor. The explanation could be Powell’s first public appearance since the Fed meeting.

Gold Technical Outlook

The gold price begins today’s trading slightly positive at $1,751, with the EMA50 providing consistent resistance at 1,755. A break of this level may indicate and confirm the bullish wave’s extension to $1,760 or $1,786.50. 

On the lower side, the bearish trend scenario will remain valid if gold breaks below a major support level of $1,746.40. Closing below this level can initiate selling until the $1,735 or $1,720 level.  

Today’s trading range is likely between $1,735 support and $1,764 resistance.

Today’s projected trend: Bullish

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