Article by: ETO Markets
Gold dealers will be attentively examining his remarks to determine the validity of the Fed rate-cut rumours. Powell is probably going to stick to his talking point that additional tightening is still in the works if inflation doesn't improve. Meanwhile, a surprising increase in the Chinese Caixin Manufacturing PMI report for November will keep supporting the price of gold. The world's largest consumer of gold is China.
A multi-month peak or some resistance around $… will probably be encountered by any further advance. The daily chart's oscillators are comfortably in the positive zone, so some follow-through purchasing might be interpreted by optimistic traders as a new catalyst to push the price of gold higher and closer to the all-time high, which was touched in May in the $… range.
On the other hand, the $… region of the overnight swing low may serve as instant support before the $… region and the $…-$… strong horizontal resistance breakpoint. The latter is expected to serve as a crucial turning point that, should it be violated, might lead to some technical selling and push the price of gold even lower than the psychological $…barrier.
