- The gold price bias remains bullish in the short term as the US dollar is bearish.
- Removing the pivot point activates further growth.
- US economic data should bring sharp changes.
The price of gold is indecisive in the short term. The precious metal is trading at $2,041, down from yesterday’s high of $2,047.
Upside pressure remains high as the US dollar maintains a bearish bias. KSAU/USD remains higher even though US retail sales, core retail sales and jobless claims are better than expected in the last session. As you already know, the yellow metal has rallied as markets expect the Federal Reserve to cut rates by 75 basis points next year.
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Data from China, the Eurozone and the UK were mixed today. Traders are waiting for US data before taking action. The Flash Services PMI could be reported at 50.7 versus 50.8 in the previous reporting period, while the Flash Manufacturing PMI could jump from 49.4 points to 49.5 points.
Furthermore, the Empire State Manufacturing Index is expected at 2.0 points, the capacity utilization rate could jump to 79.1% from 78.9%, while industrial production could register a 0.3% increase after a decline of 0, 6% in the previous reporting period.
Technical analysis of the price of gold: attractive for buyers
From a technical point of view, the price continues to challenge static resistance at $2,041. A minor sideways move could represent a continuation pattern to the upside. Cena tried to attract more buyers before extending his gains.
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The weekly pivot point at $2,049 also represents static resistance. It remains to be seen how they will react around these upside obstacles. False breakouts followed by a new lower low can herald a potential selloff. On the contrary, the removal of a pivot point can herald further growth. The middle line (ml) represents the main upside target.
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