On Monday (November 7), the international gold price retreated from a three-week high of $1,681.57 an ounce set in the previous trading day, as the U.S. dollar regained some lost ground, making U.S. dollar-denominated gold more expensive for holders of other currencies. . The price of gold is at $1,657 in the short-term.
At 14:58 Beijing time, spot gold fell 0.60% to US$1,670.98 per ounce; the main COMEX gold futures contract fell 0.13% to US$1,674.4 per ounce; the US dollar index rose 0.25% to 111.068.
On Friday (November 4), four Fed policymakers said they would still consider scaling back rate hikes at their next policy meeting. It should be noted that rumours surrounding a possible slowdown in the pace of global central bank rate hikes, supported by the recent slowdown in the pace of rate hikes by the Bank of Canada and the Reserve Bank of Australia, underscore the importance of upcoming economic data from the US.
Investors will now focus on U.S. inflation data due later this week. City Index analyst Matt Simpson said that with the dollar rising moderately, gold prices retreated after the sharp rise. “Although the market is currently inclined to raise interest rates by 50 basis points (in December), if inflation continues to be hot, it does not rule out that the Fed will continue to increase interest rates. 75bps of interest rate possibility and push gold lower.”
According to preliminary estimates, the U.S. headline CPI is expected to fall to 8.0% in December from 8.2% previously, while the core CPI is expected to fall to 6.5% from 6.6% previously. If the actual data is in line with downside expectations, gold could rally. But it is worth noting that it is difficult for the market to experience major turbulence until the core CPI weakens significantly.
Open interest in COOEMX gold futures fell by nearly 8,000 contracts on Friday, partially reversing earlier gains, according to the latest data from CME Group. Instead, volume rose for the fourth straight session, this time around 25,400 lots. Open interest fell after a sharp rebound in gold prices, suggesting a potential corrective move in the near term. If gold resumes its upward move, resistance should appear at the $1,700 mark.
On the hourly chart, the price of gold confirmed to restart the upward trend after breaking through $1669, but it is facing a correction in the short-term. The lower support is at $1666 and $1657 respectively, which are 23.6% and 38.2% of the upward range of $1616-$1682 respectively. Back to gear.