Gold Market Outlook : XAU/USD Awaiting Final Indicator


 The release of "Retail Sales" data for October yesterday was seen to show a slight deficit as well as giving a new indication that the economy in America is now heading towards a "soft landing". It means an economic cycle in which it shows a slow direction to avoid a recession. Therefore the market interprets that the American Dollar is now on the verge of "demand" and shows a warning to gold investors.

As you already know, economic data is not a "single indicator", but rather it is "connecting the dot". Therefore tonight, the unemployment data, the Philly Fed Manufacturing Index and Industrial Production will be complementary in the reading cycle of inflation data for America. In addition, the "jobless claims" data is seen to have increased reading by 6 consecutive production times, and if tonight the reading is seen to continue to increase then it will provide a clear indication that new challenges will exist in the country's labor market.

In addition, tonight some members of the Fed "San Francisco Fed President and Mary Daly" will be interviewed tonight directly to discuss "whether the interest rate is enough to push inflation to the 2% target level". Any given indication can provide a boost to short-term opportunities in the gold market.

Technical Analysis

Based on the daily chart, $1970 is now seen as a resistance price for "bullish" against the gold market. However, if this price resistance level is successfully broken, then indirectly the power of buyers is seen to continue to increase until at least reaching the level of $1990. However, if $1950 is successfully broken through, the next stop is seen to occur at the $1930 price level. The release of data tonight will be the driving force behind the gold market. To avoid getting caught in the volatility of the market, the author advises to trade after 11.00pm (Malaysian time).