XAUUSD Analysis Today: Predicted Bullish Effect of Continued USD Weakness

Andrew Fischer · 21 Nov 5.4K Views

Technical Analysis

Continuation Bullish / Upward Movement

Demand Level: 1975.29 - 1978.16

The prediction for gold indicates a significant upward trend, presenting an opportunity for gold investors. This trend suggests that the signs of weakness in the USD are likely to decrease in the long term, prompting investors to shift towards the safe-haven asset, gold. The rise in gold prices is also influenced by the Fed's anticipated stance of maintaining their narrative that monetary policy will hinge on inflation and they will hold interest rates for as long as necessary. The trend supports the upward pattern, coupled with candlestick support.


Fundamental Analysis

Gold prices rose on Monday (11/21) with a weakened dollar providing support for the prices. Investors are now awaiting the minutes from the latest Federal Reserve meeting for clues regarding the central bank's interest rate updates.

According to Reuters on Tuesday (11/21) morning, Bart Melek, the head of commodity strategy at TD Securities, stated, 'Technically, we have seen gold reach resistance and return to trading within a limited range with slightly higher interest rates as a catalyst here.'

Spot gold rose 0.36% to $1,984.97/oz at 07:50 WIB this morning, according to Investing.com data. Futures gold rose 0.34% to $1,987.00/oz.

The Fed is expected to maintain its narrative that monetary policy will depend on inflation and will hold interest rates as necessary, he added.

The Fed's meeting minutes will be released on Tuesday.

Data from last week revived hopes that the Fed might start easing monetary conditions earlier than expected after a slowdown in the job market and consumer inflation reports weaker than anticipated.

Lower interest rates put pressure on the dollar and bond yields, increasing the attractiveness of gold, which does not provide yield.

The strengthening of precious metals has lost momentum and requires new fundamental boosts, analysts at Kitco Metals wrote in a note.

The increase in US Treasury yields surpassed the declining dollar and rising oil prices, making gold and silver buyers hesitant, Kitco revealed.

The dollar weakened by 0.4% to 103.38, reaching its lowest level in more than 2.5 months against several other major currencies, also boosting the gold trend."

This provides a breakdown of factors influencing gold prices, including the role of the dollar, the upcoming Federal Reserve meeting minutes, and market sentiments influencing precious metal trading.

Get the latest daily news related to market analysis, updated trading news, and reliable technical analysis on DCFX #TheSuperApp equipped with a comprehensive feature set covering 70+ global instruments. So, download the app now and start trading!

Derivative investments involve significant risks that may result in the loss of your invested capital. You are advised to carefully read and study the legality of the company, products, and trading rules before deciding to invest your money. Be responsible and accountable in your trading.

Transactions via margin involve leverage mechanisms, have high risks, and may not be suitable for all investors. THERE IS NO GUARANTEE OF PROFIT on your investment, so be cautious of those who promise profits in trading. It's recommended not to use funds if you're not ready to incur losses. Before deciding to trade, make sure you understand the risks involved and also consider your experience.


XAUUSD Analysis Today: Potentially Up Ahead of "Non-Farm Payrolls" News

Andrew Fischer · 3h 533 Views

WTI Rises Due to Production Cuts in Several Countries

Andrew Fischer · 4h 572 Views

Gold prices range-bound as markets await Friday's jobs report, but October uptrend is intact - FXStreet's Alcala

Kitco · 5h 609 Views

Gold miner Hummingbird drops on equity placement and strategy update

Kitco · 5h 549 Views

USDCAD Falls on Decline Effect Against USD

Andrew Fischer · 21h 2.7K Views

Shares in Asia Fall as Oil Touches Six-Month Low: Markets Wrap

Yahoo Finance · 1d 3.6K Views

Gold at $2010 or $1985 is a 'buying opportunity' and 2024 will be a 'golden year' for metals - Graceland's Stewart Thomson

Kitco · 1d 1.3K Views

Bitcoin taps $45k, altcoins see double-digit gains as bull market heats up

Kitco · 1d 1.2K Views

McDonald's plans record global expansion, remains optimistic about China: CEO

Yahoo Finance · 1d 728 Views

Gold prices see new bullish momentum after ADP says U.S. economy created 103K private-sector jobs

Kitco · 1d 1K Views

USDJPY Bullish Ahead of 'ADP Non-Farm Employment Change' News"

Andrew Fischer · 1d 3.2K Views

Gold Trading Malaysia

Zarith Sofea · 1d 3.1K Views

Gold declines after hitting new record high in the first hour of trading this week

Kitco · 2d 3.8K Views