Friday, November 8, 2024

Gold Price Forecast: XAU/USD remains capped below $2,000, Chinese PMI data on the horizon

Gold (XAU/USD) is consolidating below the $2,000 psychological level during Monday’s early Asian session. The correction in the US dollar (USD) and a pullback in US Treasury yields are providing some support to the yellow metal. Gold is currently trading around $1,996, up 0.07% on the day.

Meanwhile, the US Dollar Index (DXY), which measures the value of the greenback against a basket of global currencies, falls to 106.20 after retreating from a weekly high of 106.70. US Treasury yields are moving a little, with the 10-year Treasury yield hovering around 4.90%.

Last week, Federal Reserve (Fed) Chairman Jerome Powell reiterated that the Fed will keep interest rates on hold at its upcoming meeting on Wednesday, but whether it will keep rates on hold in December will depend on incoming data. Powell added that an additional rate hike is possible if economic growth remains strong and labour shortages persist. This, in turn, could limit the upside for gold. It’s worth noting that rising interest rates increase the opportunity cost of investing in non-yielding assets, implying a negative outlook for precious metals.

Elsewhere, investors will be watching China’s PMI data on Tuesday. China’s manufacturing PMI is expected to remain in expansionary territory, rising to 50.2, while the non-manufacturing PMI is expected to rise to 51.8. The stronger-than-expected data could boost gold as China is the world’s largest producer and consumer of gold.

Looking ahead, the US Housing Price Index and Consumer Confidence are due on Tuesday. Attention will shift to the Fed’s interest rate decision and the press conference on Wednesday will be closely watched. Traders will be looking to these events to find trading opportunities in the USD/JPY pair.

Alice
Alice
Alice is a seasoned jewelry designer renowned for her exquisite creations that seamlessly blend artistry with elegance. With a passion for craftsmanship and an unwavering commitment to quality, Alice has established herself as a distinguished figure in the world of fine jewelry. Drawing inspiration from diverse cultures and artistic movements, Alice brings a unique perspective to her designs, creating pieces that transcend mere accessories to become timeless works of art. Her meticulous attention to detail and insistence on using only the finest materials ensure that each creation reflects not only her artistic vision but also a commitment to unparalleled craftsmanship. Having honed her skills through years of dedicated practice and a keen understanding of evolving trends, Alice is adept at translating her clients' desires into bespoke, one-of-a-kind pieces. Her portfolio encompasses a range of styles, from classic and timeless to avant-garde and contemporary, showcasing her versatility and ability to cater to a diverse clientele.

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