Article by: ETO Markets
Gold prices (XAU/USD) continued to slide during Thursday’s Asian session, extending a retreat from the $… region amid rising US Treasury yields and renewed US Dollar strength. This followed Wednesday’s US macroeconomic data, which painted a picture of economic resilience and stalled inflation progress. In more details, the Personal Consumption Expenditures (PCE) Price Index rose to 2.3% YoY in October (up from 2.1%), while the core PCE Index increased to 2.8%, signaling persistent inflationary pressures. Q3 GDP growth came in at a robust 2.8%, driven by a 3.5% surge in consumer spending. At the same time, weekly jobless claims dropped by 2,000 to 213,000, reflecting labor market strength, though durable goods orders missed expectations with a modest 0.2% increase. These factors fueled speculation that the Federal Reserve may pause rate cuts if inflation remains elevated. Adding to market uncertainties, President-elect Trump’s tariff threats on imports from Mexico, Canada, and China raised fears of a renewed trade war, while geopolitical tensions, including the ongoing Russia-Ukraine conflict, helped support gold’s safe-haven appeal and limited its losses, keeping prices above the $… mark.
From a technical perspective, the price of gold has been increasing over the past two days but dropped on Thursday. This indicates that selling pressure is continuing to build, suggesting a potential reversal point. There is strong resistance at the $… zone, marked by the 55-day SMA as a pivotal point; a sustained move above this level could trigger a short-covering rally towards $… and the recent swing high near $… –$… .
On the downside, the $… level remains critical support, with a break below it exposing the 100-day SMA around $…. Further declines could target the monthly low at $…–$…, with a decisive breach signaling a deeper bearish move and a continuation of the retracement from October's all-time high of $….
