Key Points:
Gold prices edged higher on Wednesday, with spot gold closing at $2,631.23 per ounce, up 0.24% for the session. Prices traded within a narrow range, reaching a high of $2,634.16 and a low of $2,627.09.
Picture: Gold prices stabilise at $2,631 after recovering from intraday lows, as seen on the VT Markets app.
The modest recovery comes after a dip earlier this week, as traders remained cautious ahead of key U.S. inflation data and signals on a possible Federal Reserve rate cut next month.
Technical indicators suggest a stabilisation in gold’s price movement. The MACD reflects mild bullish momentum, consistent with the modest upward trend seen during the latest session. Traders appear to be eyeing consolidation near the $2,630 level, awaiting fresh catalysts.
See also: Gold at 2-Week High on Safe-Haven Demand
Minutes from the Federal Reserve’s recent meeting indicated divisions over the pace of rate cuts, tempering expectations for aggressive policy easing. Many policymakers lean towards gradual easing, which has added complexity to market expectations.
At the same time, U.S. consumer confidence reached a 16-month peak in November, bolstered by labour market strength, tempered inflation expectations, and optimism about equity performance. This dampened some demand for gold as a safe-haven asset.
On the global front, a U.S.-France-brokered ceasefire between Israel and Hezbollah is set to take effect, potentially reducing risk premiums.
However, traders have eyes on upcoming U.S. economic data, including jobless claims, GDP revisions, and core PCE, which could shift expectations for monetary policy and gold prices.
The chart data aligns with gold’s consolidation, reflecting the balance of cautious optimism and lingering market uncertainty.
Further upward movement may depend on whether inflation data supports the case for a Fed rate cut, while downside risks remain contained by geopolitical factors and technical support near $2,627.
Gold remains in focus as traders watch for macroeconomic cues that could disrupt the current range-bound dynamics.
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