After yesterday’s speech by Jerome Powell (for more on the dynamics of the dollar after Powell’s speech, see our today’s review: “DXY: Did Jerome Powell derail the dollar?”), the dollar continued to weaken on Thursday, and prices for precious metals, in turn, continued to rise. Thus, the price of gold is developing a “bullish” momentum above the key support levels of 1759.00, 1770.00, moving towards the psychologically significant and local resistance level of 1800.00.
As you know, gold quotes are extremely sensitive to changes in the monetary policy of the world’s leading central banks and, especially, the Fed. Given the high risks of a recession in the economy and continued inflation growth, as well as against the backdrop of Jerome Powell’s softer rhetoric, the price of gold and the XAU/USD pair continue to rise, also taking advantage of the weakness of the dollar.
In an alternative scenario, the upward correction will end near the current levels and in the area below the resistance levels of 1788.00, 1800.00, and the breakdown of the key support levels of 1759.00, 1745.00 will resume the long-term negative dynamics of XAU/USD.
*) for the most important events of the week, see the Most important economic events of the week 28.11.2022 – 04.12.2022
Support levels: 1770.00, 1759.00, 1753.00, 1745.00, 1722.00, 1718.00, 1700.00, 1690.00, 1682.00, 1614.00, 1600.00, 1560.00
Resistance levels: 1788.00, 1800.00, 1832.00, 1843.00, 1875.00
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