Gold Price Pushes Above December Opening Range

Article By: ,  Strategist

Gold Price Outlook: XAU/USD

The price of gold pushes above the opening range for December as it carves a series of higher highs and lows, but bullion may track the November range amid the flattening slope in the 50-Day SMA ($2669).

Gold Price Pushes Above December Opening Range

The price of gold extends the advance from the start of the week to register a fresh monthly high ($2692), and the precious metal may reestablish the bullish trend from earlier this year as it continues to serve as an alternative to fiat currencies.

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As a result, data prints coming out of the US may sway the price of gold as the Consumer Price Index (CPI) is anticipated to show the headline figure increasing to 2.7% in November from 2.6% per annum the month prior, while the core reading for inflation is seen holding steady at 3.3% during the same period.

US Economic Calendar

In turn, signs of persistent inflation may lead to a dissent within the Federal Reserve, and the threat of a policy error may keep the price of gold afloat as Chairman Jerome Powell and Co. pursue a neutral policy.

With that said, the price of gold may continue to carve a bullish price series as it pushes above the opening range for December, but bullion may track the flattening slope in the 50-Day SMA ($2669) should it struggle to retrace the decline following the US election.

XAU/USD Price Chart – Daily

Chart Prepared by David Song, Strategist; XAU/USD on TradingView

  • The price of gold trades to a fresh monthly high ($2692) as it extends the advance from the start of the week, with a break/close above the $2730 (100% Fibonacci extension) bringing the November high ($2790) on the radar.
  • A breach above $2790 (50% Fibonacci extension) opens up $2850 (61.8% Fibonacci extension), but lack of momentum to break/close above the $2730 (100% Fibonacci extension) may keep the price of gold within the November range.
  • Failure to hold above the $2630 (78.6% Fibonacci extension) to $2660 (23.6% Fibonacci extension) region may push the price of gold back towards $2590 (100% Fibonacci extension), with a breach below $2550 (61.8% Fibonacci extension) raising the scope for a move towards the November low ($2537).

Additional Market Outlooks

EUR/USD Monthly Opening Range Intact Ahead of ECB Rate Decision

USD/CAD Forecast: Canadian Dollar Vulnerable to BoC Rate Cut

GBP/USD Remains Susceptible to Bear Flag Formation

Australian Dollar Forecast: AUD/USD Eyes Yearly Low Ahead of RBA

--- Written by David Song, Senior Strategist

Follow on X at @DavidJSong

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