- XAU/USD rallied strongly towards the $2,005 level with a 1.40% gain.
- U.S. Treasury yields are falling and the U.S. dollar is trading soft, allowing the metal to advance.
- The November FOMC minutes will be closely watched.
He was in Tuesday’s trading session Gold the spot price of XAU/USD saw a remarkable rise, breaking the $2000 mark and registering a gain of 1.40%. This remarkable performance was primarily driven by the decline in US yields, often seen as an opportunity cost of holding junk metals, and weak American dollar.
Today’s highlight will be the Federal Open Market Committee’s (FOMC) November minutes, which will be released later in the session as investors look for further clues about future guidance. US inflation has so far shown signs of cooling, as has the labor market, while economic activity has also seen signs of weakening. On the Federal Reserve (Fed) side, officials maintained a cautious tone, warning that further tightening would be introduced if necessary.
Accordingly, the bond market could see some volatility if investors discover any new clues about the Fed’s next moves. Between 2.5 and 10 years rates they fell to 4.86%, 4.40% and 4.39%, which benefited the yellow metal.
XAU/USD Levels to Watch
Indicators for the day diagram reflect the dominance of purchasing dynamics. In particular, the Relative Strength Index (RSI), which is approaching overbought conditions, suggests that bullish sentiment is driving the market. This increase in buying pressure is underlined by the Moving Average Convergence Divergence (MACD) showing rising green bars, indicating increased buying traction in the short term.
This is bolstered by XAU/USD placing above the 20,100 and 200-day simple moving averages (SMA), suggesting that buyers have taken control of the broader market outlook.
Support levels: $1,980, $1,960, $1,935.
Resistance levels: $2,010, $2,030, $2,050.