Gold’s Daily Price Analysis
Gold prices plunged on Tuesday's Asian session as the dollar and US Treasury yields rose, although rising inflation and worry over the Omicron coronavirus variety restricted losses, and investors remained focused on US consumer prices data anticipated later this week. Spot gold lost 0.3 percent to $1,778.09 per ounce at 01:42 p.m. ET (1842 GMT), while US gold futures fell 0.3 percent to $1,779.50.
The greenback strengthened, making gold more expensive for foreign buyers, while 10-year Treasury yields in the United States rose. Global stock markets made a muted recovery following last week's selloff, which was fueled by concerns about the spread of Omicron. "Gold is going to remain in a choppy trading environment as there is a push-pull in the market; on one side, the market is anticipating faster tapering, and on the other, there is safe-haven demand at the idea of inflation running hot," said David Meger, director of metals trading at High Ridge Futures.
On Friday, consumer pricing statistics will provide fresh clues about the Federal Reserve's monetary plan in the United States. According to Saxo Bank analyst Ole Hansen, a softer CPI reading, though unexpected, might diminish some of the focus on interest rate hikes in 2022, while more volatility in stock markets into December could also push some safe-haven demand into gold.
Increases in interest rates increase the potential cost of owning non-yielding bullion. The spot price of silver declined 1.2 percent to $22.25 per ounce. Platinum, the auto-catalyst metal, increased 0.4 percent to $935.73, while palladium rose 2% to $1,846.27.
"Auto demand is expected to increase in 2022 as vehicle production recovers marginally after two consecutive years of weakness," Heraeus precious metals analysts noted in a note. "Palladium will gain from higher loadings in China to meet stricter emission regulations, while platinum demand will be boosted by increased use in heavy-duty vehicles and some palladium substitution in gasoline vehicles."
A softer CPI reading, however unexpected, might shift some of the attention away from interest rate hikes in 2022, while further volatility in global markets into December could also drive some safe-haven demand into gold, according to Hansen.
Bullion climbed 1% on Friday as data revealed that employment growth in the United States slowed significantly in November. The results, however, did little to change predictions of a speedier reduction of economic assistance.
GOLD Intraday Technical Level
Support Resistance
1771.64 1791.21
1758.71 1798.57
1751.76 1811.14
Pivot Point: 1778.98
GOLD - Technical Outlook
On Tuesday, gold’s technical outlook continued to remain unchanged amid a lack of high-impact events. On the hourly timeframe, the precious metal gold is consolidating in a symmetrical triangle pattern that’s supporting it at the 1,776 level. While the resistance continues to stay at 1,780, The RSI and Stoch are holding in a sell zone. Therefore, the violation of the support level at 1,776 exposes the metal price towards 1,773 or 1,768 support levels. On the bullish side, the violation of pivot point resistance at 1,780 exposes the metal price towards the 1,785 or 1,787 mark. All the best!
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.