Gold Weekly Forecast: Correction deepens on hawkish Fed tone, US-China trade truce
Gold prices fell to their lowest since October due to a hawkish Fed stance and optimism over a US-China trade deal.Summary
Gold (XAU/USD) experienced significant bearish pressure, dropping below $4,000 to its weakest level since early October. This decline was driven by two main factors: growing optimism regarding a US-China trade truce, which reduced safe-haven demand, and cautious remarks from Fed Chair Jerome Powell following the October rate cut. Powell stated that another rate cut in December was "far from assured," causing the 10-year US Treasury yield to climb above 4% and strengthening the US Dollar, which weighed heavily on gold.
Looking ahead, investors are awaiting key US macroeconomic data, including the ISM Manufacturing PMI and ADP private sector payrolls, as well as commentary from Fed officials. If officials echo Powell's hawkish tone, the USD could strengthen further, potentially leading to another leg lower for gold. Technically, key support levels for gold are $3,970, $3,900, and $3,850-$3,820, while resistance is noted at $4,090 and $4,130.
(Source：BeInCrypto)