During the Asian and European sessions, the precious metal gold surged as traders hedged against a possible intensification in the U.S.-China trade conflict before a Dec. 15 deadline for fresh U.S. tariffs.
Overall, the precious metal remains under pressure in the wake of a stronger U.S. dollar. The Average Hourly Earnings from the United States Bureau of Labour Statistics was published, which showed a decline in November to 0.2% from the expectations of 0.3% and weighed on the U.S. dollar.
The Non-Farm Employment Change for November showed growth to 266K from expected 181K and supported the U.S. dollar. The Unemployment Rate of the United States also declined in November to 3.5% from previous & expected 3.6% and added in support of the U.S. dollar.
Besides, the Preliminary Consumer Sentiment from the University of Michigan also came in favor of the U.S. dollar as 99.2 against the expectations of 97.0. The Final Wholesale Inventories for October were also in favor of the U.S. dollar when released as 0.1% against the expectation of 0.2%. The Preliminary Inflation Expectations from the University of Michigan showed a drop this month to 2.4% from the previous 2.5%.
Gold – XAU/USD – Daily Technical Levels
Support Resistance
1,452.48 1,474.11
1,444.81 1,488.08
1,423.18 1,509.71
Pivot Point 1,466.44
Gold is likely to trade bullish above 1,459, which is working as a horizontal support level. The closing of Doji and Inside up bar patterns are suggesting chances of a bullish reversal in gold.
It looks like gold is trying to capture a bullish retracement, and it has completed 23.6% Fibo corrections at 1,464. This level is now extending substantial resistance to gold.
The bearish breakout of 1,459 can lead to gold prices towards 1,450. While bullish trend continuation can lead to gold prices to 1,471, I will be staying bearish below 1,466 today. Good luck!
