Here is the update on XAUUSD for today, November 28, 2023. The price of gold (XAU/USD) successfully broke through the horizontal level of $2,008-2,010 and surged to around $2,018 on Monday, reaching its highest level since mid-May. Currently, the precious metal seems to have entered a positive consolidation phase and is moving within a range just below that zone ahead of the European session on Tuesday.

Speculation regarding a potential delay in the Federal Reserve's (Fed) rate hike cycle emerged following lower U.S. consumer inflation data two weeks ago. Additionally, the market anticipates the possibility of a rate cut in 2024. This has caused the U.S. Dollar (USD) to fall to its lowest level in three weeks, supporting the strengthening of gold prices from levels below $1,950, which was the monthly low on November 13.

Concerns about a global economic slowdown, which tend to support traditional safe-haven assets, have also strengthened the positive outlook for gold prices in the short term. However, positive sentiment in Asian stock markets poses a hurdle for the performance of the precious metal.

Optimistic traders also seem reluctant to take high risks and prefer to wait for the release of the U.S. Personal Consumption Expenditures (PCE) Index as a significant trigger. Meanwhile, short-term trading opportunities may arise from the release of the Conference Board Consumer Confidence Index and influential speeches from FOMC members on Tuesday. Nonetheless, the short-term fundamental backdrop tends to favor optimistic traders.

Current Market News: Gold prices remain strong due to expectations of Fed rate cuts.

  1. Ongoing support for gold prices above $2,000 is due to confidence that the Federal Reserve will maintain interest rates, keeping gold stable as it does not provide yield.
  2. Low U.S. consumer inflation has triggered speculation that the Fed will maintain current rates and may ease policy in 2024.
  3. A decline in new home sales in the U.S. in October due to higher mortgage rates has impacted affordability.
  4. The weakening of U.S. 10-year Treasury yields and the decline of the U.S. Dollar support the positive performance of XAU/USD.
  5. Increasing recession risks strengthen the status of precious metals as safe-havens, although positive sentiment in stock markets limits gains.
  6. Traders are looking forward to U.S. Consumer Confidence Index data from the Conference Board and speeches from Fed officials during the North American session.
  7. Market focus is on the upcoming core PCE Price Index release from the Fed scheduled for Thursday.


Warning!

That concludes the explanation of "XAUUSD Today: November 28, 2023 - Bullish Signal, Gold Prices Soar!" This analysis is based on fundamental and technical perspectives from trusted sources and is not intended as advice or solicitation. Always remember that this content aims to enrich the reader's information. Always conduct your own research first regarding other forex information as a reference for your trading.

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