Asia - Commodities Fundamental Analysis | 13 December 2023
Gold (XAU)
FUNDAMENTAL:
Key news events today
PPI (1:30 pm GMT)
FOMC Statement (7:00 pm GMT)
FOMC Press Conference (7:30 pm GMT)
What can we expect from Gold today?
The Producer Price Index (PPI) – which measures wholesale inflation – has retreated significantly on an annualised basis and November’s forecast of 1.0% YoY points to another month of slower prices. However, all eyes and ears will be glued to the upcoming FOMC statement press release as well as Federal Reserve Chair Jerome Powell’s press conference.
It is widely expected that the Fed will keep the benchmark interest rate on hold once more at 5.25% to 5.50% for the third consecutive meeting and any neutral-sounding remarks by Fed Chair Powell during the press conference could spark a major sell-off in the greenback and thus boost gold prices.
Next 24 Hours Bias
Medium Bearish
TECHNICAL:
The XAU/USD chart currently exhibits a bearish overall momentum, indicating a downward trend. Price could potentially continue in a bearish direction towards the 1st support level.
The 1st support at 1965.26 is identified as an overlap support, which means it has previously acted as a significant price level where buying interest emerged. This level is worth monitoring as it could potentially provide a temporary pause in the downward movement.
The 2nd support at 1932.53 is also categorized as an overlap support and is another area to watch for potential support. It has historical significance as a price level where buyers have stepped in before.
On the resistance side, the 1st resistance at 1991.12 is identified as an overlap resistance, indicating a level where selling interest may increase, potentially causing a bearish continuation.
Further up, the 2nd resistance at 2010.00 is also categorized as an overlap resistance and represents another potential barrier where selling pressure could intensify.