Gold Prices Struggle Near $2,624 Amid Key Economic Events This Week
On Monday, Dec. 23, the CB Consumer Confidence index climbed to 112.9, slightly above the previous 111.7. This improvement reflects cautious optimism among consumers, supported by steady job growth and increased household spending.
The data could shape Federal Reserve policy, as consumer sentiment is a critical driver of economic growth during the holiday season.
Durable Goods and Housing Data Present Mixed Signals
Tuesday, Dec. 24, brought a mix of positive and concerning economic indicators:
- Core Durable Goods Orders (m/m) advanced 0.3%, signaling resilience in capital goods sectors like machinery.
- Durable Goods Orders (m/m) fell 0.3%, highlighting lingering challenges in manufacturing.
Meanwhile, the housing market showed promise, with New Home Sales surging to 666K from 610K, driven by favorable mortgage rates. The Richmond Manufacturing Index improved slightly, moving from -14 to -11, but remains in negative territory.
Labor and Energy Data Close the Week
Following the Dec. 25 bank holiday, attention shifted to labor market and energy supply data:
- Thursday, Dec. 26:
- Unemployment Claims dipped to 218K, reflecting a healthy labor market.
- Crude Oil Inventories dropped 1.6M barrels, fueling concerns over tight energy supplies.
- Friday, Dec. 27:
- The Goods Trade Balance deficit widened to $101.2 billion, up from $98.3 billion, reflecting weaker export activity.
- Natural Gas Storage saw a significant withdrawal of 125 billion cubic feet, driven by winter demand.
Gold Spot (XAU/USD) Technical Outlook
Gold prices, currently trading at $2,623.61, face headwinds as mixed economic data shape market sentiment. Immediate resistance at $2,639, aligned with the 50 EMA, has restricted upward moves. Support lies at $2,602, with potential declines toward $2,580 if this level fails to hold.
Gold remains in a tight range, with resistance at $2,639 and support at $2,602. The RSI at 46.37 signals a cautious market, while the broader trend leans bearish.
Technical Indicators:
- RSI: 46.37, reflecting neutral-to-bearish momentum.
- 50 EMA: $2,639, acting as key resistance.
Conclusion: Gold struggles below $2,639. Without a breakout, prices could test support at $2,580 as mixed economic signals continue to weigh on sentiment.
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