GOLD--> Consolidation. Waiting for new move to change trend.
Updated
XAUUSD mild fluctuations on Friday and a second consecutive weekly decline were recorded. Accordingly, the precious metal lost approximately 0.5% this week, after hitting its lowest level since November 26 at the start of the trading session.So, do you wonder what factors have impacted XAUUSD?
Talking About Influencing Factors:
The sentiment among short-term traders and technical positioning in the gold market has clearly cooled, with efforts underway to find momentum to improve sentiment in the short term.
Throughout the day, gold showed little reaction to the much-anticipated employment data of the week. The latest report revealed that although job growth remains relatively stable, cracks in the U.S. labor market have begun to emerge, suggesting potential vulnerabilities.
Regarding U.S. monetary policy, midweek, Fed Chair Jerome Powell noted that the U.S. economy is stronger than it was in September and adopted a more cautious stance regarding rate cuts. According to the CME Group's FedWatch Tool, with two rate cuts already this year, traders predict a 68% probability that the Fed will cut rates by another 25 basis points at its December 17–18 meeting. Theoretically, it remains unclear whether gold can sustain an uptrend as prices approach a strong resistance level.
Talking About Technicals:
Gold is currently in a sideways trend, so we are considering trading within the range's boundaries. Our focus is on the local channel from H1 2660 - 2615. At this point, gold is heading toward the upper zone of interest. A false breakout of the main resistance zone and price consolidation in the selling area may lead to a price decline toward the lower boundary of the sideways range.
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