Gold's sharp rise at the start of the week
Monday 27 November 2023, Asian session, gold rose significantly until it touched 2018, making an increase of +$16 from the open price. after October prices failed to break above 2000. This early week we traded gold above 2000 (last time in May). It is not surprising that the movement of gold was predicted last week, when US data was not strong enough to strengthen DXY and 10YT. Traders is showing a response to the Fed's future policy direction to end the cycle of increasing interest rates and start easing next year. a weaker USD makes gold cheaper against currencies.
We can call this week FOMC week because starting today (Tuesday) many Fed officials will provide statements regarding macroeconomic conditions.
On the other hand, this week there will also be the release of GDP and PCE data as a benchmark for the rate of inflation. Of course, this week will be volatile week because there are unwritten data (Fed Statement) and release of written data that is needed to analyze prices.
IMO, there is room for consolidation that needs to be considered, including 2016, 2009, 2005, and the psychological number 2000. if failed break above 2016 we will see the possibility that price will consolidate or retrace to that key level. if pass 2016 there is 2020 or 2030 as nearest resistance.
We can call this week FOMC week because starting today (Tuesday) many Fed officials will provide statements regarding macroeconomic conditions.
On the other hand, this week there will also be the release of GDP and PCE data as a benchmark for the rate of inflation. Of course, this week will be volatile week because there are unwritten data (Fed Statement) and release of written data that is needed to analyze prices.
IMO, there is room for consolidation that needs to be considered, including 2016, 2009, 2005, and the psychological number 2000. if failed break above 2016 we will see the possibility that price will consolidate or retrace to that key level. if pass 2016 there is 2020 or 2030 as nearest resistance.
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