The United States (US) dollar continued to strengthen as investors responded to pro-USD sentiment driven by expectations of the Trump administration's policies, although US Consumer Price Index (CPI) data for October met forecasts and Federal Reserve (Fed) policymakers did not provide big surprise in their latest speech.
Now, the focus turns to tonight's US Producer Price Index (PPI) data, which is expected to show an annual increase in primary and core producer prices, potentially further strengthening inflationary pressures in the economy.
In addition, market players will also focus on the speech by Fed Chairman Jerome Powell scheduled early in the morning. Market players are awaiting any indication of whether the Fed's rate direction may change in response to a possible surge in inflation driven by changes in fiscal policy.
In the gold commodity market, the latest Commitment of Traders (COT) data has provided an interesting atmosphere in the gold market. For the short-term market, a significant reduction in long positions by Non-Commercials indicates a short selling opportunity if gold fails to hold on to key support levels.
However, the Commercial position has warned traders to be wary of any possible price recovery.
The risk of a limited decrease in gold provides opportunities for buyers may appear if gold is seen to be able to defend the main support price level and potentially become a strategic entry point (Equilibrium) of the market.
Technical Analysis of Gold Price
Based on the daily chart, the price of gold is now approaching the critical support level at around $2,536.34.
If that level is successfully maintained, gold is expected to rise at least up to $2,633.27.
But if otherwise, the main focus of the market is seen to be focused on the price level of $2,379.49.
