Gold price outlook impacted by flattening slope of 50-day SMA

Gold Price Outlook: XAU/USD

Gold prices appear to remain in a tight range as they hold above the weekly low ($2,622), but gold may give back the advance from the November low ($2,537) as it struggles to get back above the 50-day SMA to trade ($2668).

Gold price outlook impacted by flattening slope of 50-day SMA

Gold’s volatile price action may prove temporary as it remains below pre-US election prices, and the precious metal may no longer reflect the uptrend from earlier in the year given the flattening of the moving average.

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US economic calendar

Still, data prints from the US could influence gold prices as the Federal Reserve takes a neutral stance, and the US Non-Farm Payrolls (NFP) report could sideline the central bank as the update is expected to show a 200,000 rise in November .

In turn, few signs of an impending recession could force the Federal Open Market Committee (FOMC) to leave interest rates unchanged in December, and the threat of a policy mistake could support gold prices as the precious metal offers an alternative to fiat currencies.

Against this backdrop, gold prices could consolidate in the coming days if it defends the weekly low ($2,622), but gold may struggle to sustain the increase from the November low ($2,537) given the flattening of the 50-day SMA -dollars) ($2668).

XAU/USD price chart – daily

Chart created by David Song, strategist; XAU/USD on TradingView

• Gold prices could continue to move sideways as it remains within the price range from earlier this week, but a close below the $2630 (78.6% Fibonacci Extension) to $2660 (23.6% Fibonacci Extension) range could occur pushing the precious metal back towards $2590 (100% Fibonacci extension).
• The next area of ​​interest is around $2,550 (61.8% Fibonacci Extension), but a close above the $2,630 (78.6% Fibonacci Extension) to $2,660 (23.6% Fibonacci Extension) range % Fibonacci Extension) brings $2,730 (100% Fibonacci Extension) back on the radar.
• A break above the November high ($2762) increases the scope for a test of the October high ($2790), with a break/close above $2790 (50% Fibonacci extension) $2850 (61.8% Fibonacci extension). expansion) opened.

Additional Market Outlook

EUR/USD is struggling to get back above the previous support zone

GBP/USD recovery vulnerable as bear flag formation takes shape

The USD/CHF pullback is facing a positive rise in the 50-day SMA

USD/CAD defends post-US election recovery, hits November high

— Written by David Song, Senior Strategist

Follow X at @DavidJSong