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Gold Price Seesaws Near $2,040 Amid Market Reassessment and Dollar’s Rebound

Gold’s market valuation experienced fluctuations during Thursday’s Asian trading session, with prices oscillating around $2,040 per ounce, stepping down from the previous day’s six-month high of $2,052.

The slight pullback in gold’s price may be attributed to a reassessment of market sentiment or investors locking in profits from its recent rise. Despite a modest recovery in the US Dollar sparked by a stronger-than-anticipated GDP report for Q3, showing a 5.2% growth, gold managed to maintain positive traction.

The US Dollar Index saw a slight recovery from monthly lows, reaching 102.85, yet this uptick did not exert significant downward pressure on gold prices. Additionally, a dip in Treasury yields, with the benchmark 10-year note at 4.259%, could support gold’s appeal as a non-yielding asset.

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Cleveland Fed President Loretta Mester’s remarks indicated a cautious approach to monetary policy, with future rate hikes contingent upon incoming economic data, leaving the door open for adjustments based on evolving financial conditions.

The upcoming release of China’s NBS PMI could be pivotal for the gold market. Given China’s status as the leading gold producer and consumer, stronger-than-expected PMI figures might fuel an upward momentum for the precious metal. Conversely, recent PMI readings below expectations may strengthen the Dollar, potentially curbing gains in gold

.Investors are also eyeing a suite of significant US economic releases, including Initial Jobless Claims, the Core PCE Price Index for October, the Chicago PMI, and Pending Home Sales data. These indicators are likely to offer fresh cues on the economic landscape and could sway the gold market, shaping the near-term outlook for the yellow metal’s valuation.

Gold Technical Outlook

From a technical perspective, GOLD navigates the upper boundary of its intraday bullish channel, seeking momentum to continue its primary uptrend toward the $2,075.25 target. With the EMA50 underpinning this bullish outlook, a breach below $2,037.00 could invite short-term bearish pressure, potentially testing down to $2,020.00 or even $2,009.30 before any resurgence.

Today’s trading is bounded by a support at $2,030.00 and resistance at $2,065.00, with the trend forecasted to remain bullish. 

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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