Gold price were on track for their biggest weekly decline in over three years, posted more than four percent fall, as expectations of lower interest rate cuts by the U.S. Federal Reserve strengthened the dollar, reducing gold’s appeal.
Fed Chair Jerome Powell’s comments on Thursday, indicating no rush to lower rates due to a strong economy, solid labor market, and persistent inflation, further pressured gold.
Further, the dollar was set for its biggest weekly gain in more than a month, making gold more expensive for other currency holders.
Earlier, US Retail Sales for October expanded monthly and annually, with the former dipping slightly compared to September numbers. Recently, the Fed announced that Industrial Production for the same period improved but remained in contractionary territory.
U.S. Treasury yields, meanwhile, extended gains after data showed retail sales in the world’s largest economy rose more than expected last month.
Market expectations for a rate cut in December dropped to 62% from 83% the day before, as traders closely monitor remarks from Fed officials and data releases. Concerns over inflationary pressures from President-elect Trump’s tariff plans are also weighing on market sentiment.
Next week, traders will focus on Fed speeches, housing data, and S&P Global Flash PMIs for further direction.
Technical Outlook – Gold Price
Gold price posted a steep weekly decline of over 4%, the worst since July, hitting a low of 73,300 before settling at 73,946, down from the previous week’s close of 77,272.
As per the outlook given on 1 November, prices dropped significantly towards predicted target 75,800-75,250.
The formation of a long bearish candlestick indicates strong downside momentum, with RSI 14 crossing below its 9-day SMA, further confirming bearish sentiment.
A break below the key support at 73,120 could extend the fall toward 72,700-72,250. Conversely, any rise toward 74,900-75,500 is likely to face selling pressure.
Traders are advised to wait for the key support level to be tested this week.
Until then, Happy Trading!
Commodity Samachar Securities
We Decode the Language of the Markets
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